A California company claims to have cornered the market on investor financing for more than 10 properties when the homes they are buying are currently owned by the Federal National Mortgage Association.
Fannie Mae unloads real-estate-owned assets through its HomePath.com portal.
Investors interested in financing those properties can utilize HomePath financing for up to 20 one–to-four-unit properties. The property limit was raised from 10 properties.
Investors can be a limited liability company or an individual.
But a HomePath search for lenders that can provide financing for that many REOs yields only one result: Prospect Mortgage LLC.
“We are the only lender right now that has this variance in the entire nation,” Prospect Mortgage Senior Vice President Product Development & Implementation Steve Somerman said in a written statement.
Somerman noted that one other company “has the ability to do this variance to 20 properties, but I have not been made aware of who it is.”
Sherman Oaks, Calif.-based Prospect explained in a news release that no mortgage insurance or appraisal is required for the HomePath financing.
The maximum loan-to-value ratio is 70 percent, and there is a 2 percent interested party contribution limit for non-owner occupied purchases.
“We’re delighted to have been selected by Fannie Mae as the inaugural financing partner for the expanded HomePath investor loan program,” Prospect Mortgage Retail and Correspondent Lending President Doug Long said in the announcement.
Earlier this month, Prospect expanded its FHA 203(k) lending by adding a correspondent channel.