Mortgages for Investment Properties Through Freddie Mac

Even with the tightening in the credit markets mortgage giant Freddie Mac still offers Mortgages For Investment Properties. Here is a basic rundown of their options:

Investment Property Types

• 1, 2, 3 and 4 unit investment properties are eligible for financing.
• Condominium Hotels, or condotels are not eligible.

Eligible Mortgage Products for Investment Properties

• 15, 20 and 30 year fixed rate mortgages
• 5 and 7 year balloon mortgages
• Most ARMs (adjustable rate mortgages)
• A-Minus mortgages (unless the borrower owns multiple investment properties)

Investment Property Transaction Types

• Purchase
• No cash-out Refinance
• Cash-out Refinance

Down Payment for Investment Property Closing Costs

• Gift funds are not allowed

Eligibility for Mortgage on Investment Properties

• Loan Prospector result of "Accept" or "A-Minus." Manually underwritten loans will be accepted
• Minimum Credit Score of 620
• Maximum Debt Ratio of 45 percent
• No more than 4 properties owned with mortgages. Additional requirement for borrowers that own more than one Investment Property
• The borrower may not have any relationship with the builder, developer or porpert seller
• Minimum reserves equal to 6 months principle, interest, insurance and taxes

It should be noted that Freddie Mac changes the requirements frequently, particularly their requirements for mortgages for Investment Properties. This post is accurate at this time, but may need to be updated in the future. Contact your mortgage lender or broker for more information on obtaining mortgages for Investment Properties.