Investment Property Financing - FAQ
Q. What types of investment financing does Retiro Financial provide?
A. Retiro Financial provides permanent financing on loans secured by 1 to 4 unit residential investment properties and condominium units in qualifying projects.
Q. Can Retiro Financial provide financing to investors that own multiple investment properties?
A. Retiro Financial can provide financing secured by an eligible property to investors that own up to 10 properties secured by a 1 to 4 unit residential property, including condominium units at the best available rates and pricing. Properties owned free and clear are not included in this 10-property limitation. We also provide non-agency financing at slightly higher pricing for investors who own more than 10 financed properties. Call for details.
Q. I own 11 total rental properties but only seven have financing. Can I obtain a loan from Retiro Financial?
A. Yes. The 10 property limitation only applies to financed properties. You could finance up to three more properties.
Q. I own four properties but two are 4-unit properties. I have a total of ten units. Can I obtain a loan from Retiro Financial?
A. Yes. The 4 unit properties are counted as a single property. You could finance six additional properties.
Q. Are there additional requirements for investors that seek to acquire multiple properties.
A. Yes. Investors that own more than 4 financed properties my have slightly higher qualification requirements. Most notably, they might have higher reserve requirements than borrowers that own fewer properties. Other limitations may also apply for investors that own more than four financed properties.
Q. I want to acquire a duplex. I plan to live in one unit and rent out the second unit. Is that a problem?
A. No. In fact. That transaction will be treated as a purchase of a primary residence and will receive more favorable treatment.
Q. My income will be insufficient to acquire the 2 unit property (duplex) unless I am able to use the income that I will acquire in the future from renting the second unit. I don’t have a tenant ready to rent yet. How can I qualify?
A. The potential rent from renting the second unit will be determined by the appraiser and you can qualify with the amount the appraiser determines is reasonable for renting that unit. The same rule applies to acquiring any rental property. You will be able to utilize the appraiser’s opinion of a fair rental amount to qualify on a property you are purchasing.
Q. Do you do investment loans on condominium units?
A. Yes. However, the project in which the property is located must meet agency eligibility criteria to receive our premium pricing. Talk with a Retiro Financial loan consultant to ascertain the criteria and other requirements.
Q. What’s the minimum down payment on an investment property loan?
A. We can provide financing on a standard conventional purchase transaction secured by an investment property with a down payment as low as 15%. However, we recommend that an investor put a minimum of 25% down on any rental property purchase to avoid oppressive Fannie Mae loan level pricing adjustments for loans with a loan to value ratio greater than 75%. Utilizing Retiro Financial’s Texas 2-Step, an investor can potentially finance the acquisition of an eligible property without a down payment limit. If the transaction meets the criteria an investor could obtain a property without any cash investment.
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