How do you go about finding the financing you need for an investment property? Actually, there are many options. A few include:
- Go to a lender for traditional financing.
- Use cash.
- Ask for owner financing.
- Use an investment partner. They put in the cash; you put in the expertise.
- Purchase with a Lease Option. This gives you time to save a down payment and secure a loan.
Many lenders have a limit as to the number of home loans they allow to any one individual or LLC. When we started investing, the limit was eight mortgages per individual or company. Today, most lenders cap that number at four.
Well, apparently, Fannie Mae has expanded their available options for investor financing. According to their website, HomePath.com:
“Expanded financing opportunities are available for investors who may have existing financed properties to allow mortgages up to a total of 20 financed properties. The investor may be an LLC or an individual. HomePath Mortgage (HPM) is available on eligible properties noted with a HomePath Mortgage logo on the Property Details page of this site. Currently, a limited number of lenders offer this expanded financing.
HomePath Renovation Mortgage is also available to individual investors (no LLCs) for up to four total financed properties. See the Financing tab for more information about HomePath Renovation and for a list of HomePath Renovation lenders.”
Check it out. See if this might be a viable option for you.
Good luck and let me know what you find.