Financing Multiple Properties – Freddie Mac’s Way

Freddie Mac Now Allows 6 Financed Properties

Finance Multiple Properties

Finance Multiple Properties

Sometimes, things come to those who wait, that’s what the Heinz Ketchup folks taught me. Freddie Mac (Conventional Home Loan Investor counterpart to Fannie Mae) likes to often emulate the thickest slowest Ketchup possible.  But finally!  Freddie Mac is offering a program that allows investors to finance more than 4 properties

Prior to this an investor was either stuck at financing 4 properties or utilizing Fannie Mae’s Multiple Financed Properties program for up to 10 properties however Fannie’s program does not allow cash out refinances (except on the Delayed Financing Program).

Conventional Mortgage Allows 6 Financed Properties

Freddie Mac has upgraded stale limiting guidelines rather than creating a “new program.”  To a real estate investor its 6 and one half-dozen.  The net result of the shiny new guidelines to an investor is they can now add 2 more properties to their portfolio with Freddie.

Before the change Freddie allowed 4 financed properties.  Now, they have ratcheted that total up to 6.  This is a welcome change to mortgage lenders and investors alike.

Fannie vs. Freddie

Now that Freddie is in the multiple financed properties fight, when and why would they win?  The clearest knockout is with cash out refinances.  Fannie Mae won’t allow this when a consumer has more than 4 financed properties (unless subject is their primary or they qualify for “delayed financing”).  Uncle Freddie however throws a mean left hook and knocks cash out refinances to the floor for investors having up to 6 financed properties.

The other benefit is that we can pit Fannie and Freddie against each other from a price standpoint.  Prior to the change, the only rate choice was Fannie.  Now we can compare.  Mind you that pricing on Fannie Mae and Freddie Mac products are rarely anything more than .125% different if they are different at all.

By Jeremy House

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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