–The loan limit for a conventional loan is $417,000 (for a single family home or condo)
— Minimum down payments: 20% down for investor purchase of 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 6 months’ reserves after closing ( 6 months’ mortgage payments in savings)
— Minimum of 660 credit score required by Merrimack Mortgage Company for investment purchase using conventional loans.
–The borrower can use rental income from the subject property to qualify if they have a history of managing rental property. If the investor is a first time investor then rental income from the subject can not be used to qualify.
–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). No gifts.