Investment Property Financing

Last year, everything was going along fine until I called my broker to discuss investment property financing. I needed to refinance a bunch of my rental property.

He told me that Fannie Mae and Freddie Mac had changed their rules about investment property loans. Since I’m self-employed he told me that my chances of getting an investment property loan from any regular lender was going to be a miracle.

The problem was, and I’m sure you’ve experienced this too since we’re both real estate investors, is that I had all my cash locked up in my rentals and I need to refinance in order to get cash to continue my real estate investing. According to him, that wasn’t happening any time soon since I had some things preventing me from getting any type of  “conventional” investment property mortgage.  Those things included being a self-employed real estate investor, owning more than 4 rental properties and needing cash out on some properties that I had owned for less than a year.

Well, I called a bunch of banks in my area and I found out about this type of investment property financing called portfolio loans.  The way it was explained to me is that portfolio lenders don’t have to follow the Fannie Mae and Freddie Mac rules so they’re a lot more lenient when it comes to us real estate investors.  I’ll share some more about portfolio lenders in this blog and also give you some tips.