Non-conventional 30 yr. Fixed Rate Products

[Andrew M.]

Good afternoon all! After searching through the archives, there is plenty of discussion on 15 vs. 30 yr. mortgages, but very little on fixed rate loan products once you exceed your conventional allowance. I'm at my SFR limit of ten 30 year Fannie/Freddie loans, and my wife is approaching her 10 as well. Once we exceed this, going to a local bank with 20/25 year ARMs seems to be the plausible next step. Through some research, there are companies (mainly hedge funds, other private investment groups) that will offer a 30 year fixed product at a slightly increased interest rate and fees. Sprout seems to be one that keeps coming up, but after seeing their terms, it seems a little steep. 6.0-7.5% and 2 points, buyer paid comps, and 3 year prepayment penalties (the fees are killer, a higher interest rate is expected).

We are in a credit/W-2 income range that doesn't need to settle for subprime rates unless, of course, it is out of a lack of diversity of product. 

Are there any lenders or borrowers that have been down this road? Where have you ended up settling? How did you structure your SFRs past 20 homes between you and your spouse?