Winter Garden, FL · Member since 2013 · 19 posts · 0 votes
Hello BP ! I was wondering for experienced investors what do you think about Fannie Mae financing and being able to include the rehab in , and for investors you only put 10% down . In Florida , the interest for me would be 4.3% . My niche is to buy and rent and buy and hold . I could take advantage of the equity and refinance and pay the loan off . Is this something that experienced investors would capitalize on ?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Do you have a link to info on this program? Fannie & Freddie don't make loans directly. Rather, they buy the loans from "lenders" after the loan is made. I quote lenders because these lenders seem more like brokers than actual lenders, since they immediately resell their loans. I haven't seen any info on a new program like this. This would be a pretty helpful program for buy & hold investors.
Real Estate Investor · Trinity, FL · Member since 2013 · 67 posts · 9 votes
13y
Rodney Hunter check your rates on the HomePath. You might be right, but my lender is quoting low to mid-5% with 10% down, low to mid-4% with 20% down. If I'm looking at a HomePath home I run the cash flow with 10% down and the higher rate and 20% down with the lower rate. Obviously one gives you a lower down payment and the other one gives you a higher net cash flow. For me it would depend on the house and the numbers.
Jon Holdman here are the links - he's referencing the Fannie HomePath Loans and the Freddie HomeSteps Loan:
Investor · Sunnyvale, CA · Member since 2013 · 62 posts · 19 votes
13y
It sounds like he's talking about the Homepath Mortgage and Homepath Renovation programs. If you qualify and have less than 4 mortgages then you can get an investor loan for 10% down. If you have more than 4 mortgages then it will be 20% down + six months reserves and a 720+ credit score (may vary a little by lender). Renovations can be folded into a single mortgage (up to 35% ARV or $35k max). I used a Homepath lender to get around the appraisal requirement and it went fine. I think the rate may be a little higher than you could get otherwise but 4.3% doesn't sound that bad. However, as Jon said, you won't be getting a loan from Freddie or Fannie directly. It will be through a participating lender and there aren't as many as conventional lenders so you may have to shop around. It seems like a good program to me and my experience was pretty good but it also probably depends on the lender.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
13y
Wait. I'm seeing some conflicting info on here. Is this a change to the existing homepath program? I thought the rennovation program required 30% down if you were over 4 mortgages. Has that been changed to 20%?
Investor · Rockville, MD · Member since 2012 · 27 posts · 2 votes
13y
I am settling on 3 new properties which will bring me up to 5 fnma backed loans (including my primary residence and another underwater house).
I have also been told that I will not be eligible for additional loans at this point.
Any suggestions? My lender has suggested a "portfolio loan" but it looked to be adjustable rate and less attractive for my buy and hold strategy.
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
13y
Chris Drury, I've been looking for additional solutions as well, including contacting many small banks in the area where I want to invest. So far, no luck. The portfolio loan was also suggested to me, but I believe it gets tricky when/if you want to sell off some of the properties in the portfolio. I'm interested in hearing how this plays out and what other options, besides private money, may come up.
Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
13y
My portfolio lender offers 15 year fixed loans of 5/30 and 7/30 arms. There is no pre payment penalties and each loan is an individual loan so there is no problem selling homes if you want too.