–The loan limit for a conventional loan is $484,350 (for a single family home or condo). This is also known as a conforming loan limit.
— Minimum down payments: 15% down for investor purchase of 1-unit single family home
25% down for investor purchase of 2-4 unit properties
–Seller can pay some or all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract. The maximum amount the seller can pay toward closing is 2% of the sales price.
— Borrowers must have reserves after closing ( reserves are money available to you after closing such as savings or retirement funds). Automated underwriting will dictate how much reserves are needed but 6 months’ reserves is typical.
— Minimum of 620 credit score required by Bookend LendingMortgage Company for investment purchase using conventional loans.
–Experience managing investment properties is not required. The use of rental income toward qualifying is subject to agency requirements.
–Acceptable sources of funds to close include savings, liquidation of mutual funds, stocks or retirement funds, secured loans including loans on the primary residence or other real estate, sale of asset(s). All funds must come from the borrower’s own funds. NO gift funds are allowed.