Freddie Mac has announced that they are matching many of the changes that Fannie made earlier this year. Honestly most banks and all the PMI companies were already following Fannie's rules; so, these rules really only additionally apply to banks like U.S. Bank who is a Freddie Mac lender and for borrowers who put more than 20% down on a new home. Here is a summary of the changes--

•·         If the buyer's current principal residence is not sold and closed, you MUST count both house payments against the borrowers as they buy and close on their new home. Second, they must have at least 6 months of PITI payment reserves on both properties, unless they have at least 30% equity in their current home. If they have at least 30% equity then they only need 2 months of PITI payment reserves on both properties.

•·         If the borrowers are turning their current primary residence into a rental property, you can NOT use rental income from that property UNLESS they have at least 30% equity in that home documented by an appraisal. Plus, the borrowers must have 6 months of  PITI payment reserves on both properties.

•·         If buying a 2-4 unit investment property you must put 25% down. On a single family home you must put 15% down. Used to be that a duplex was treated like a single family home.

•·         To refinance any rental property the max LTV is now 75%.