Fannie Mae is requiring additional reserves when a borrower has more than one financed property. The amount of reserves is based on a percentage of the unpaid principal balance (UPB). Reserves are liquid funds that you have access to. Reserves are funds you need to have after closing your transaction. Funds for reserves cannot be your funds for down payment or closing cost.
Do you own a rental property in Seattle? Read this!
May 21, 2015 by 3 Comments
If you own rental property located in Seattle, you need to be aware of fairly new requirements, created by the Seattle City Council, to register your investment property. This city ordinance, the Rental Registration and Inspection Ordinance (RRIO) impacts landlords and property managers who have multiple units to those who have just one rental home. There are some exceptions, check the ordinance for more information.
Determining Rental Income for a Conforming Mortgage
November 22, 2014 by 1 Comment
UPDATE: This post was written in 2014 and guidelines may have changed. Please visit our Conforming Mortgage Guide or contact me for more information.
Recently Fannie Mae updated their guidelines for rental income, including the addition of Rental Income Worksheets for the lender to complete to help make sure the rental income is calculated correctly. How much rental income may be used and how it is calculated will depend on when the borrower obtained the rental property, when rents were collected and what how many units there are with the subject property. Underwriters are looking the likelihood that the rental income will continue as well as the losses too. If your rental is producing a net loss, that will factored into your qualifying ratios.
Buying Your First Investment Property – Low Down Payment Options
September 19, 2011 by 1 Comment
Buying your first investment property is one of the best ways to start building long-term wealth through real estate — and you may not need as much money down as you think. The key is understanding which strategies are available to you and which one fits your situation. Here’s what first-time investors in Washington State need to know.
This article was updated in 2026 to reflect current mortgage guidelines.
Can I Buy a New Home After Refinancing as Owner Occupied?
October 28, 2010 by 13 Comments
This situation comes up more often than you might expect: a homeowner refinances their current home using owner-occupied financing — getting a better rate than they would on an investment property — and then wants to buy a new primary residence. Is that allowed? And if so, how soon?
The short answer is yes, with important caveats. Here’s what lenders and underwriters look for. [Read more…]
