Investment property purchases - for real estate & industry professionals
A conventional non-owner-occupied purchase at up to {{product.ltvMaxOneUnit}} LTV with no mortgage insurance - and a screen narrow enough to run before the offer goes out.
| Gate | One unit | Two to four units |
|---|---|---|
| Max LTV / CLTV | {{product.ltvMaxOneUnit}} | {{product.ltvMaxMultiUnit}} |
| Minimum down payment | {{product.downMinOneUnit}} | {{product.downMinMultiUnit}} |
| Min LTV / max down payment | {{product.ltvMin}} LTV, so no more than {{product.downMaxEligible}} down on any unit count | |
| Max DTI | {{product.dtiMaxOneUnit}} | {{product.dtiMaxMultiUnit}} |
| Minimum FICO | {{product.ficoMin}} | {{product.ficoMin}} |
| Mortgage insurance | {{product.miRequired}} | {{product.miRequired}} |
| Occupancy | Investment property, purchase only | |
| Terms | {{product.terms}} | |
| Loan amount | {{product.loanMin}} minimum, up to {{product.loanMaxRule}} of {{product.loanHardCap}} | |
| Run this on your client | Passes when | Fails when |
|---|---|---|
| 1. Down payment | {{product.downMinOneUnit}} to {{product.downMaxEligible}} on one unit, {{product.downMinMultiUnit}} to {{product.downMaxEligible}} on two to four units. | {{product.downIneligibleAt}} or more down (minimum LTV is {{product.ltvMin}}) - standard agency financing applies instead. Under the minimum for the unit count also fails. |
| 2. Transaction | A purchase. | Any refinance. Purchases only. |
| 3. Credit | Representative score of {{product.ficoMin}} or better - the lowest middle score of each borrower. | Under {{product.ficoMin}}, or a borrower with no score of their own. Non-traditional credit is not accepted. |
| 4. Source of funds | Down payment and reserves from the buyer's own documented accounts. | Any gifted funds. Sweat equity is not an eligible asset either. |
| 5. Rental plan | A long-term rental plan. | Short-term or nightly rental. |
| 6. Rental income | If the file needs the subject property's rent to qualify, each applicant already owns a primary residence. | The buyer does not own the home they live in and the subject's rent is needed to qualify. |
| 7. Loans in this program | Fewer than {{product.maxLoansOutstanding}} outstanding under this program. | Already carrying {{product.maxLoansOutstanding}} under this program. |
Ineligible regardless of the seven (partial list): foreign national borrowers; manufactured and mobile homes, cooperatives, community land trusts, and working farms; properties in Puerto Rico; files with an escrow holdback. Exceptions are not permitted.
Scan for the complete industry briefing: where this sits against standard agency financing, the counterintuitive minimum-LTV rule, worked client scenarios, and what to send over on a live deal.
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