Finally some great news for investors!! You will once again be able to finance more than four properties. I have included the Fannie Mae announcement from earlier today. If you are looking to buy or refinance, please let me know and I can assess your options!
Gary Parkes
404-936-5601
Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower's other mortgages.
Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery to Fannie Mae with purchase dates on or after March 1, 2009.
Reserves Definition and Policy Requirements
We also are updating our definition of liquid financial reserves to include all components of the monthly housing expense - which will now be known as PITIA - including homeowners' association dues, special assessments, ground rents, and subordinate financing payments.
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