December 20, 2007

Freddie Mac Rolls Out Two New Mortgages for Multi Family

Freddie Mac brings out two new mortgage products.

1. Acquisition Rehabilitation Mortgage: The total repair cost must be a minimum of $10,000 per unit but must not exceed the lesser of $30,000 per unit or 30 percent of acquisition cost. NOTE: This would allow an new buyer to completely rehab a property and reposition for a different target market. Perhaps a neighborhood in transition would be a prime reason to look into this option.

2. Acquisition Upgrade Mortgage: The total repair cost must be a minimum of $3,000 per unit but must not exceed the lesser of $10,000 per unit or 20 percent of acquisition cost. This product offers borrowers financing of up to 86 percent loan-to-purchase and 80 percent loan-to-cost. NOTE: This mortgage is designed for unit upgrades such as appliances or new bath remodels.

These new products can be obtained at the same time maximizing mony available for a big rehab with guaranteed rate lock-ins. More on the Freddie Mac page

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