How investment property gets funded: loan products, underwriting criteria, debt service coverage, refinancing windows and the cost of borrowing short.
Agency cash-out refinances on investment properties top out at 75 percent loan-to-value on one unit, require six months of ownership, and price above owner-occupied deals.
Karim Al-Rashid
Owner-occupied multifamily buyers can put as little as 3.5 percent down with FHA or 5 percent down with conventional financing, provided they live in one unit for at least a year.
Karim Al-Rashid
Debt service coverage ratio loans qualify a rental purchase on the property's cash flow rather than the borrower's personal income, with pricing and equity terms that reflect the added risk.
Peter Almeida