The Kestner Team

Ron Greenfield, an experienced Mortgage Lender that Nina and I have been working with for several years, sent the following email today.

"We now have a new loan program for investment property buyers with 5 – 10 financed properties including subject property to be financed. The guidelines are rather restrictive, but those loans are now doable again. Current rates are in the low to mid 6s with some buy down required. Below are highlights of the guidelines.

If subject property loan is for a Second Home or Investment Property, ownership of 5-10 financed properties (including subject property) is allowed subject to the following:

• Subject property may not be a Condominium
• Fully documented income and assets only.
• 1 unit Purchase: Maximum 75% LTV/CLTV, minimum 720 credit score
• 1 unit Rate/Term Refinance: Maximum 70% LTV/CLTV, minimum 720 credit score
• 2-4 unit Purchase or Rate/Term Refinance: Maximum 70% LTV/CLTV, minimum 720 credit score
• No history of bankruptcy or foreclosure during the last 7 years
• No lates for the past 12 months on any mortgage loan
• Rental Income from additional Investment Properties must be documented with 2 years Federal Tax Returns
• IRS Form 4506-T must be completed and signed by the borrower and tax return transcripts must be obtained prior to loan closing
• In addition to reserve requirements for the subject property, additional reserves covering 6 months Monthly Housing Expense are required for each additional financed Second Home or Investment Property."

Ron Greenfield

Senior Mortgage Consultant

Mortgage Lenders of America

217 Jamestown Park Road, Suite 8

Brentwood, TN 37027

Phone (615) 690-5042

Toll Free: (866) 265-0797

Fax: (866) 593-2275

rgreenfield@mloa.net