Multiple-Property Discount

Financing Two or More Properties

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We understand that buying multiple properties at once is a complex venture. If you play your cards right, you’ll grow your real estate portfolio quickly and have multiple monthly income streams. That is money you can use to reinvest, pay for ongoing expenses or put towards other goals such as starting a college fund, launching a business, or remodeling your primary residence.

So whether you’re looking to purchase or refinance several properties, we’ve got you covered. With our Multiple-Property Discount program, you’ll pay the application and commitment fees of a single property when you submit all applications within 30 days. We’ll waive those costs for the remaining properties, up to $2,500 a loan.

All types of residential homes are eligible. Examples include single-family homes, multi-family homes, townhouses or condos, cooperatives, and duplexes.

Required Documentation:

  1. Credit reports (pulled from the three bureaus Equifax, Experian, and TransUnion)
  2. Tax returns from the last two years
  3. W-2s of 1099s for proof of streams of income
  4. Bank statements (e.g., brokerage accounts and IRAs, etc.)
  5. Financial statements (e.g., balance sheet, tenant rent history, and appraisal, etc.)

What to Consider When Financing Multiple Properties

Loan Products
You won’t be able to obtain government-insured loans, such as FHA and USDA loans.

Down Payment and Loan-to-Value (LTV)
A down payment of at least 20% or higher. A loan-to-value (LTV) of 80% or less. The down payment and loan-to-value (LTV) ratio have an inverse relationship. So if your down payment is 25%, your LTV will be 75%. The down payment and LTV requirements vary by property type and number of units. Click here to find out more.

Cash Reserves
You need at least six months’ worth of payments or PITI (principal, interest, taxes, and insurance) per property.

Debt-to-Income (DTI)
A maximum debt-to-income (DTI) ratio of 45%, though you’ll get the best loan terms with a DTI below 36%.

Credit Score
You must have a credit score no less than 630, though a credit score of 720 will get you the best rates.

Interest Rates
Since you’re taking out multiple home loans, you can expect slightly higher interest rates to compensate for the additional risk.

Private Mortgage Insurance (PMI)
Luckily, you won’t have to pay any mortgage premiums because you’re putting 20% down to finance your properties. PMI is required when you put less than 20% on a home loan.

FAQs

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