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Dana Cummins | Traditional Options for Financing Investments

As an investor, it’s good to understand the traditional financing options available and how they can change over time, says Dana Cummins; Assistant Vice President at Fidelity Bank. In this episode, Dana highlights the options for first time home buyers, growing investors and even investors who have reached the residential loan limit set by Fannie and Freddie.

Be sure to tune in to hear more insight in to:

  • How the financial lending space has changed over time.
  • The argument for why your first investment should be a multi-family property…that you live in yourself.
  • The financing options for non-owner occupied properties and how they differ for single family properties and multi-family properties.
  • And lastly, how the financing options change dramatically once you’ve hit the limit by Fannie and Freddie.
  • And more

Episode Timeline:

0:60 Today Jason and Thom interview Dana Cummins; Assistant Vice President/Senior Mortgage Banker from Fidelity bank.

2:20 Dana provides us with details on her extensive background in the financial lending space and how she progressed to where she is today.

3:40 Dana explains some of the things that have changed over time in the financial lending space, where she spends a majority of her time and some of the options her bank provides.

5:20 We discuss how buying a multi-family property and occupying that property can be a great first investment for first time home buyers.

8:32 Dana explains the FHA option for buying a multi-family property for first time home buyers.

10:30 We transition in to discussing non owner occupied investor property (Single family unit) where Dana explains the options available. 15% down and mortgage insurance are required. Required credit score is 620 and above.

11:48 Dana explains the financing options for financing multi-family units (2-4 units). She explains the conventional options; 25% down, 620+ credit score and reserve requirements.

15:10 We discuss the allowable financed properties rule set by Fannie and Freddie and how the financing options change.

16:20 We expand on the commercial lending options for those with more than 10 residential loans.

18:30 We wrap up by discussing some of the outliers Dana has seen in the space and how those scenarios are handled.

Mentioned In the Show: