I initially began purchasing rental property as a way to diversify my wealth-building strategy. After I acquired three houses, I noticed that over the course of six months, my rentals were far out-performing my IRA and 401(k). I decided to pull my money out of the financial markets and reinvest it into building a strong rental portfolio. I’m not saying that this is a strategy everyone should employ, but I will say that anyone looking to build wealth should at least review the real estate investment vehicle.
The housing market crash has become a distant memory, and home prices are looking healthy again. That means there are good opportunities for investing in the residential real estate market.
If you’re ready to borrow for a residential investment property, Fidelity Bank Mortgage has several loan options available for investors. I can help you strategize both a long-term and short-term plan to ensure that you’re taking advantage of these loan programs.
Below are the requirements needed for investment loans. We have a variety of terms available:
1. Fidelity Bank will finance a maximum of five loans (properties) for a single borrower. The maximum is based on four Investment properties and one Primary residence, or three Investment properties, a Second/Vacation home and a Primary residence.
2. The exception to the above rule if you are “refinancing” an investment property under the HARP Program: Limit of 10 financed properties of which a total of 4 properties are eligible for financing with Fidelity Bank Mortgage. FBM will finance 4 properties with no more than 1 property with LTV>125%, and 1 property with LTV >=115% to 125%
3. Debt to Income ratio must not exceed 45%
4. Minimum down payment is 20% on purchases of single family residences, 30% on 2-4 units and 15% on renovation loans
5. Six months of PITI housing reserves required on each property owned
6. Minimum credit is 680; qualification is based on overall credit history
7. No mortgage late payments within the last 12 months on any mortgage
8. No bankruptcy or foreclosures in the last 7 years
9. Two (2) year of tax returns required showing rental income from all rental properties
It’s good to note; When you work with a broker, you give up control. The underwriter can change lending standards or decide that they want to pull out of the deal at the last minute. When you work with a direct lender such as Fidelity Bank Mortgage, you’re in closer contact with the decision makers.
Senior Mortgage Banker
Top Producer and
MBAG Platinum Award Member
Fidelity Bank Mortgage
304 Tribble Gap Road, Suite 200
Cumming, Georgia 30040
p: 678.468.4046 | f: 678.829.0612
Leave a Comment