Basic Conventional Investment (Fannie and Freddy) Property Financing Guidelines – Not Very Flexible


2017 Non-Owner Occupied Cash Out Refinance Rules from Fannie Mae (Conventional loans)

some recent rules and guidelines for (Investment Property) cash out refinances on rental properties as set by Fannie Mae:

  • The maximum loan-to-value is 75% for 1-unit properties and 70% for 2- to 4-unit properties. These maximums are lowered by 10% for adjustable rate mortgages.
  • If the property was listed for sale in the last six months, the maximum LTV is 70%.
  • The property must not be listed for sale at the time of loan application.
  • The property is not eligible for a cash out refinance if it was purchased within the last six months. There is an exception for properties that meet the Delayed Financing guidelines.


What we do here (DB Capital) and Urban Coyote Funding:  We want all the loans that do not fit Fannie and Freddy guidelines , we love cashouts

Stated income Loans  /No ratio loans

No property seasoning (refinance,cashout whenever)

can be listed for sale

rate is determined by cash flow,credit, ltv….we just need to analyze the deal

Those rules from Fannie are for govt insured loans, yes they are very good rates, but our loans are private and portfolio loans (no govt insurance, which means more flexible with high rates (avg rates 6-8% , 30 year loans)


Non Bank – outside Dodd Frank – stated – investor loans – Jumbo


Just be prepared to tell us your story (reason for portfolio loan and details on your current financial health). T

hese loans work well for borrowers with a “story”, recently self employed, recent problems (BK,foreclosure, other). Maybe you just became paid 1099 rather than by w2. Maybe you have a job and own a small business or rental property. We use alternative means of calculating income (You should know you last 24 months of bank deposit history) such as bank statements, assets (some call it asset depletion method), gross income and other ways to qualify good borrowers.

Investors  – Landlords and even fix and flippers – rehabbers

Rental Property Loans – No Ratio and stated income to 75% , 75% LTV with scores to 600

Are you getting turned down due to credit scores ?

If you property cashflows and  you can show some income, we have been financing rental property loans to 75%   , rates in 7’s

do you you have vacation rentals ? , use market rent or no income – no rent qualified loans , for these we just ask you have higher credit – 630 +

Most of my loans are in 7’s , no reason to pay over 8% if your property has the right cash flow

Monty – owner – and