Fannie Mae: Lending to Buyers/Borrowers with multiple Properties

 Welcome to mortgage fun: Even the changes are changing!

 In February we heard from Fannie with some good news in: FNMA Announcement 2009-02: Multiple mortgages to the same borrower; new reserve requirements & Assignment of Rent Form (1-4 family)

 Prior to this announcement Fannie, and Freddie both said: 4 financed properties MAX. They would allow you to finance your primary residence if you had more than 4 financed properties, but you could not buy another investment property or second home, Nor could you refinance.

With the 2009-02 letter we had a brief reprieve that allowed 5-10 properties according to Fannie Guidelines with some significant restrictions to reserve requirements and Qualifying. (the reserve requirements in this letter were very restrictive, and almost impossible for the average buyer)

Well, this was scheduled to take place March 1, and here we are just a few hours away from April 1 and Not one single lender that I know of is adding this guideline to it's tool box. So we are stuck with the 4 financed property number for the time being.

• Primary Residence: it doesn't matter how many financed homes you own.
• Second homes and Investment properties: Maximum of 4 total financed properties

As you can see, it is ok for lenders to be more restrictive than Fannie Guidelines. There was a lot of speculation in many parts of the country and investor loans have not performed well, so you can imagine lenders being a little leery of taking on any additional risk, If the dog bites you once, shame on the dog, if the dog bites you twice, Shame on you!

So the  pencil sharpening on the Government's side changing guidelines did not dribble out for public consumption yet.  I would imagine that banks that accepted Bailout $ may be required to adopt these guidelines, but as of today we have not seen anything to suggest that.

Welcome to Mortgage Fun!  Even the Changes are Changing!

 

Rob

Robert Rauf

Mortgage Banker

www.RobertRaufHomeLoans.com   or my blog: http://activerain.com/blogs/rrauf

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

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