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Investor Financing Options

We are asked about investor financing options so often that we thought it was time to repeat them.

For loan amounts below $417,000:

15% Down: Investors can put down as little as 15%, but the PMI rates and interest rates are so high, it simply makes more sense to just put down an extra 5%. We never recommend this option.

20% Down: This seems to be most popular option, despite the fact that the rate is about 0.25% higher than the rate associated with 25% down. Today, a $400,000, 80% LTV, investor loan could be obtained at about 4.5% at a cost of one point (Assumes FICO of 740; SFR; APR is approximately 4.75%).

25% Down: This is the most competitive option. Today, a $400,000, 75% LTV, investor loan could be obtained at about 4.25% at a cost of one point (Assumes FICO of 740; SFR; APR is approximately 4.5%).

For loan amounts above $417,000:

35% Down: This is Fannie’s requirement. They will not go over 65% loan-to-value.

20% Down: Freddie Mac will go 80% LTV, but the rates are much higher.

NOTE: There are NO 203k Construction/Rehab loans for investors, irrespective of loan size. 203k loans are OWNER OCCUPIED (FHA) loans only.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646