The mortgage market is an industry with rules, regulations and requirements changing on a minute-by-minute basis.

Three important changes of interest have just occurred.

1.   Do you seek a mortgage for multiple properties?  Previously the limit was 4.  It is now 10 says Jeremy Mills of Good Faith Mortgage in Charleston. “The borrower must have at least a 720 credit score and must prove income.   The properties must be single family residences, double-wide manufactured housing or a warrantable condo.”   According to Mills, the maximum loan to value on the properties is 75% for purchase and 70% for a refinance.

For investment properties, the borrower does have to have 6 months reserves on the subject property, and 6 months reserves on each other financed second home or investment property.

2.   100% financing through USDA.  Need 100% financing?  The USDA may have the answer.   Says Mills of Good Faith, “this program does have county income limit restrictions and the property must fall into a USDA approved zone.”   Income verification is required and the minimum credit score is 620.  According to Mills, the USDA will consider making exceptions on a case-by-case basis for those whose score is less than 620.

3.    Self Employed?   The self – employed must prove their income, but according to Mills, banks are only requiring the previous year’s income instead of the past 2  years.    Mills tells Gooden + Faircloth, “banks will often ask for a current profit and loss statement by the self-employed person’s accountant to verify income.”