Fannie Mae Refinancing Rules for 5+ Financed Properties
Subprime Crisis No Barrier to Affordable Housing (Photo credit: woodleywonderworks)
You may not be aware of this, but there are special rules governing the purchase or refinancing of investment properties when you have more than 4 properties (up to 10) with a mortgage:
Initial purchase of property (single unit) requires a 25% down payment (75% loan to value ratio)
Initial purchase of property (2-4 unit) requires a 30% down payment (70% loan to value ratio)
Refinancing (limited cash out - no more than $2,000 provided at closing) of investment property requires 30% equity (70% loan to value ratio)
Credit score minimum is 720
Best to talk to your lender and carefully go through all the criteria before getting too far down the path of refinancing. Doing a HARP refinancing may be an option - confirm with your lender.
