Fannie Mae makes an announcement today to raise the number of financed investment properties back to ten. Since October of 2008, Fannie Mae had lowered the number of financed investment properties a borrower could have to three. Starting again March 1st, 2009, the limit will go back up to 10 properties. This is BIG news to the real estate investor. I think we all knew that going down to three financed properties was too aggressive of a move. Fannie Mae sites it’s reason for the change as a means to help with the housing recovery effort. There will be however tighter guidelines and restrictions from the previous rules Below are the new guidelines for financed properties from number 5 thru 10.
* The minimum credit score goes to 720
* 75% LTV for a Purchase and 70% LTV on a Limited Cash Out for 1 unit properties
* 70% LTV for a Purchase or Limited Cash out on 2-4 unit properties
* No Bankruptcies or Foreclosures for 7 years
* No deliquencies within the last 12 months on any mortgages
* In order to count the rental income from other rental properties the investor has, a two year look back is required from the borrowers Federal income tax returns.
* 6 months reserves will be required on each investment property that you own and the subject property.
This is awesome news and proves that Fannie Mae is truly committed to the real estate investor and fixing the housing crisis. If you would like more information please contact me at 952-808-2820.
Rob Bonahoom
Mortgage Coach
5 responses so far ↓
1 Fannie Mae Allows 10 Properties Again! | Minnesota Investment Property Blog // Feb 9, 2009 at 12:22 am
[...] changes come with some extra hurdles, but that is OK. Read all the details at Rob Bonahoom’s Investment Mortgage Guy [...]
2 Saint Paul Real Estate // Feb 10, 2009 at 11:22 pm
I am so excited. I was very skeptical that they were ever going to change this back. I figured it would be the open market that would again start offering mortgage products for those of us with more than 4 properties.
3 Charles Yang // Apr 17, 2009 at 2:46 pm
As I know of, there is NO lenders have changed (or will change) back into ten. There are many reasons for that. It is a waste of time. If somebody know of such lenders, please post them here.
Thanx,
Charles
4 steve // Dec 20, 2009 at 1:09 pm
Well the changes were necessary. Today our Markets are getting back to shape because we did make some changes initially and changed again.
What makes us different from others is the fact that we react positively to the challenges. Today we proved to the world that here is a nation that does not worry about challenges. We have proved a battered economy can come in to the postive mode if there is will.
5 webnoor // Dec 20, 2009 at 1:13 pm
Fannie Mae has made a significant announcement back February. Little announcements and actions like this made our economy to come back.
I simply like the way the Real estate market was handled during this phase. We were told to control our buyings and be accountable. Now we can breath easy because Real estate again is proving to be a great success.
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