Written By: Leslie Petersen, Rules and Regulations Expert and Editor of www.MortgageCurrentcy.com.
As lenders tighten their underwriting belts, the rules for residential (1- to 4-unit) investment property mortgages get even tougher. I’ve heard from a lot of brokers questioning whether Fannie Mae and Freddie Mac loans are a realistic option for their investor borrowers.
In response, I believe that Fannie and Freddie mortgages are the best possible options for your borrowers. The rates, terms, and products are far superior to almost anything else that you can find in today’s market. At the same time, we all know that investment property mortgages are super-high risks for the lenders and investors. These are not easy loans, and they continue to get more restrictive.
The way that I see it, there are two primary challenges: (1) Most loan officers don’t know what they are doing; and (2) It’s very difficult to squeeze an investor borrower into a set of convoluted and prohibitive rules.
The second challenge is trickiest because you just can’t squish some of your clients enough, and they flat out won’t qualify. What’s best is to recognize it quickly. Which brings us back to the first challenge, and I can help you, right now, by interpreting the rules for you and how you can get those loans closed! (www.MortgageCurrentcy.com)
Let’s start with the rules.
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