Financing your real estate investments is getting more and more interesting here in the Kansas City area and throughout much of the country. Much more interesting. Wachovia lending just shut down. IndyMac Bank is gone. And the bloodletting continues.
The good news? You can still get financed. Countrywide Home Loans and Wells Fargo do not appear to be going anywhere. And I still say the single best source for income propeprty loans is your local bank. You know, the one that only has 2-10 branches. Based in your home town. That sort of thing.
Because with Fannie Mae and Freddie Mac’s new 4 limit you might occasionally need a loan through portfolio. (In case you didn’t know, Fannie and Freddie say you can only have 4 real estate properties with outstanding mortgages now. This is down from 10. A significant difference that really hurts the part-time real estate investor…the bulk of my clients.)
Investment property loans are still available. But you’ll need 10% down as a minimum in today’s environment for single family homes and duplexes. Fourplexes and above will require a minimum of 20% down and maybe as much as 25%. If you know of a lender with loan product for fourplexes still available at 10%, let me know.
As a professional real estate agent working with real estate investors each and every day (save Sundays 🙂 ) I keep in touch with and up to date with several quality lenders in and around Kansas City. Let me know if I can recommend a lender to you today. And if your pre-qualification letter is greater than 60 days old you’ll want to get it re-run through. Trust me.