Mortgage Navigator • Conventional • Occupancy

Investment properties

Investment-property conventional financing is available, but it carries different leverage, reserve and pricing rules than owner-occupied financing.

Build My Mortgage Game Plan Conventional Navigator

Fannie and Freddie both allow investment property

Eligible one- to four-unit investment properties can be financed conventionally subject to the agency's transaction, LTV, reserve, rental-income and property-count rules.

Freddie current AUS treatment

Freddie's current guidance allows eligible investment-property mortgages with an LPA Accept risk class. The prior 720 Indicator Score requirement for certain 7–10 financed-property scenarios was removed in March 2026.

Rental income is separate

Owning an investment property does not automatically mean all projected rent counts. The rental-income branch explains tax-return history, leases, landlord experience and subject-property treatment.

Agency Difference: maximum LTV, reserve treatment and property-count rules should be checked in the current Fannie Eligibility Matrix or Freddie Guide/LPA feedback for the exact property type and transaction.

Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Occupancy must reflect the borrower's actual intended use. Misrepresenting occupancy can constitute mortgage fraud.