Reserve Requirements For Multiple Financed Properties

Did You Know that conventional lenders vary on the reserve requirements for multiple financed properties for one Borrower?

Fannie Mae requires the following reserves:

• 2% of the Unpaid Principle Balance ( UPB) for 1-4 financed properties
• 4% of the UPB for 5-6 financed properties
• 6% of the UPB for 7-10 financed properties ( 720 fico required)

Freddie Mac requires the following reserves:

• 2 months of PITI for 1-6 financed properties
• 8 months of PITI reserves for 7-10 financed properties ( 720 fico required)

Observation:

• Freddie Mac now goes up to 10 financed properties like Fannie but has a higher PITI reserves requirement.

Our wholesale lenders are direct sellers to both Fannie Mae and Freddie Mac which means that we can originate loans and adapt the above mentioned. If you have concerns or questions about property reserve requirements, contact our office and we’ll connect you to a loan consultant that can explain more in detail. We are specialists in financing borrowers that have more than two properties in their names.