Smaller SFR Investors Will Benefit from Agency Financing

Fannie Mae and Freddie Mac have both announced programs that provide long-term financing at competitive interest rates to help investors refinance and acquire SFR properties.

Investors in single-family rental (SFR) homes are increasingly buying assets from mom-and-pop operators who own just one or two properties.

“The middle of the market is growing at the expense of the mom-and-pop sector,” says Daren Blomquist, senior vice president of property data firm ATTOM Data Solutions. “The handful of 800-pound gorillas in the industry who own tens of thousands of properties are not acquiring a lot more, other than through mergers and acquisitions.”

As investors consolidate their portfolios, agency lenders are there to help. Fannie Mae and Freddie Mac have both announced programs that provide long-term financing at competitive interest rates to help investors refinance and acquire SFR properties—in some cases potentially building up portfolios large enough to attract the interest of the largest companies, like Invitation Homes or American Homes 4 Rent.

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Source: Smaller SFR Investors Will Benefit from Agency Financing