Investor Loans at Freddie Mac Drop

Investor loans guaranteed by Freddie Mac fell to just 3% of portfolio outstandings in the first quarter, the lowest reading in almost seven years, according to new company figures. In 2007, roughly 7% of Freddie's guarantees were on non-owner occupied homes, a GSE spokesman told National Mortgage News. Investor loans, in general, can differ from "pure" vacation or second homes, in that the owner is trying to cover his payments (full or in part) by renting out the property. Some owners of vacation homes do not rent out the house at all and instead can afford the monthly payments without the help of rent rolls. During the housing boom, some lenders provided low downpayment financing for investor properties and vacation homes but since the market crash of 2008, most mortgage bankers want at least 20% down or more, depending on where the home is located.