Basic Conventional Investment (Fannie and Freddy) Property Financing Guidelines – Not Very Flexible


2017 Non-Owner Occupied Cash Out Refinance Rules from Fannie Mae (Conventional loans)

some recent rules and guidelines for (Investment Property) cash out refinances on rental properties as set by Fannie Mae:

  • The maximum loan-to-value is 75% for 1-unit properties and 70% for 2- to 4-unit properties. These maximums are lowered by 10% for adjustable rate mortgages.
  • If the property was listed for sale in the last six months, the maximum LTV is 70%.
  • The property must not be listed for sale at the time of loan application.
  • The property is not eligible for a cash out refinance if it was purchased within the last six months. There is an exception for properties that meet the Delayed Financing guidelines.


What we do here (DB Capital) and Urban Coyote Funding:  We want all the loans that do not fit Fannie and Freddy guidelines , we love cashouts

Stated income Loans  /No ratio loans

No property seasoning (refinance,cashout whenever)

can be listed for sale

rate is determined by cash flow,credit, ltv….we just need to analyze the deal

Those rules from Fannie are for govt insured loans, yes they are very good rates, but our loans are private and portfolio loans (no govt insurance, which means more flexible with high rates (avg rates 6-8% , 30 year loans)


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