Investment Mortgage Guy

On December 13th Fannie Mae made several new changes to their guidelines as they continue to tighten credit standards.

The Followings Changes Were Made to the Loan to Value Ratio’s for Investment Properties:
                                                                Old LTV                 New LTV
Purchase Transactions                              90%                        85%
No Cashout Refinances                             90%                        75%
Cash Out Refinances                                 85%                        75%

We have seen many changes in 2008 to Fannie Mae’s guidelines for investment properties. Some the the changes this year include:

* No cash out of investment properties for 6 months
* Limiting the number of financed investment properties to 3.
* Raising credit score requirements

I expect that the changes aren’t done yet and we will continue to see more restrictive credit standards until the housing market starts to come back and default rates decrease.

Rob Bonahoom
Mortgage Coach
952-808-2820