A while back, you might have heard investors could obtain financing for as many as 10 duplexes, triplexes or small-multi family properties; a number that included the investor’s personal home and vacation property.
And, if you’re anything like me or my clients, you quickly called your loan officer or bank to find out how.
That’s when you were told that even though Fannie Mae and Freddie Mac were willing to back up to ten of your loans, that bank or group of lenders were not due to something called “bank overlays”.
What are those?
Essentially, even though government sponsored entities (GSEs) like Fannie and Freddie can say one thing, each individual lender is allowed to participate or not — according to their own tolerance for risk.
So, for example, Wells Fargo might only allow a duplex investor to have four mortgages because of Wells’ own internal rules or “overlays”.
Needless to say, this has been frustrating to both myself and my duplex investors.
Until last week, when William Halfrich, a loan officer I know saw his well-known local company bought out by Wintrust Financial, which is a large bank based in Chicago.
According to Bill, Wintrust is willing and able to lend on as many as 10 duplexes and investment properties; ANYWHERE in the United States. Most of the loans require a 25 percent down payment.
So if you’ve been looking to buy more duplexes or investment properties but haven’t been able to find financing, you now have a solution.
Since the transition is so recent, I can’t give you a link to Mr. Halfrich’s web site; and if I type his number here, he’ll get spammed mericlessly. So feel free to give me a call or drop me a line if you’re looking to buy a duplex and I’ll put you in touch with him.