Rate Update and 5-10 Properties Financed
Mortgage rates are looking better this week due to a well bid auction of 30-Year Bonds last Thursday. Today we find the 30 Year Fixed at 4.750% (4.929% APR), the 15 Year Fixed 4.250% (4.557% APR), and the 5/1 ARM 3.750% (3.929% APR). The drop in the stock market today should help further the improvements.
With the demise of the ALT-A loan markets went the ability to finance more than 4 properties to one buyer, or did it? Well, if the subject property is Owner-Occupied, there is no limit to the number of financed properties the borrower may own. If the subject property is a Second Home or Non-Owner Occupied the maximum of financed 1-4 unit properties a borrower may have is 4.
Up to ten financed properties are allowed provided that all the following requirements are met:
- Minimum credit score is 720.
- Purchase transaction only.
- Maximum loan to value is 75% for 1 unit property and 70% for 2-4 unit properties.
- No history of bankruptcy or foreclosure in past 7 years.
This knowledge is powerful when pairing today’s real estate investor with a lender. Not all banks will operate under these guidelines.
Central Coast Lending, Inc.