Financing your first investment property

Presented by Rhonda PorterMortgage Master Service Corporation

www.mortgageporter.com | www.twitter.com/mortgageporter | NMLS MLO 121324 | CLA 40445

Mortgages for Your First InvestmentProperty

Buying Your First Investment Property

• Real Estate is more affordable • Plenty of inventory• Mortgage rates are historically low• Mortgage programs available with lower down

payments– Fannie Mae Homepath – FHA (available for 2-4 units – owner occupied)

Financing is not as difficult as many perceive.www.mortgageporter.com | twitter.com/mortgageporter | fb.com/washingtonmortgagepro

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“Traditional” Conventional Financing

• Minimum 20% down payment• Down payment must be borrowers funds (cannot be a gift)• Perfect credit scores not required however the better your

credit, the lower your rate.• 45% DTI – qualify with both mortgage payments (no credit

for rents)• 6 months reserves (6 x proposed mortgage payment).

Additional reserves may be required if other properties are owned.

• Seller may contribute up to 2% towards closing cost

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Fannie Mae Homepath• Minimum 10% down payment (1-unit)• No private mortgage insurance w/credit scores of

660 or higher.• No appraisal required.• Seller may contribute up to 2% towards closing cost.• Rental credit may be used with bona fide signed

lease agreement on property.Fannie Mae Homepath Mortgages are only available for certain homes that are owned by Fannie Mae (foreclosed).


http://www.mortgageporter.com/reportingfromseattle/2011/04/how-to-buy-an-investment-property-with-a-10-percent-down-payment.html

http://www.homepath.com/


www.homepath.com


Find homes that are eligible for Homepath financing at www.homepath.com


http://www.homepath.com/

FHA• Owner Occupied: Purchase 2-4 unit property

– you must live (occupy) in one of the units.• FHA rates and FHA guidelines.• Minimum down payment (3.5 – 5% down)

with FHA mortgage insurance.• Seller may contribute up to 6% towards

closing cost prepaids.• Up to 3 months reserves may be required.• Projected rents may be used for qualifying.



Get prequalified!

It’s important to know how much of a loan amount and sales price you qualify for before you present an offer on a home (regardless of the type of financing or program you select).

If you’re buying a home anywhere in Washington State, Rhonda Porter, Licensed Mortgage Originator at Mortgage Master Service Corporation can help you! Visit www.mortgageporter.com to learn more or to start an application.


Typical Documentation

• Last 2 years W2s • Last 2 years tax returns (if self employed or paid

commission)• Most recent paystubs covering 30 days of

income• Most recent bank statement/asset accounts (all

pages) documenting at least enough funds for closing

• Complete loan applicationwww.mortgageporter.com | twitter.com/mortgageporter | fb.com/washingtonmortgagepro

http://www.mortgageporter.com/reportingfromseattle/apply-for-a-mortgage-.html

http://www.mortgageporter.com/reportingfromseattle/apply-for-a-mortgage-.html


About Rhonda Porter

Rhonda is a Licensed Mortgage Originator who has been helping people with their mortgage needs at Mortgage Master Service Corporation since April 2000. She writes a nationally recognized blog, The Mortgage Porter, aimed at helping consumers have more information about the mortgage process.She is available to originate residential mortgages for homes located in Washington State, where she holds her NMLS license.




Financing your first investment property

Real Estate

Transcript of Financing your first investment property