Towards the end of last year, Fannie Mae announced that they would not make a loan on investment property to anyone who had 4 or more mortgages. This was quite a blow to many people who are investors in real estate. The new rule did not care hoe many mortgages the borrower had when lending on their primary residence. Of course, Freddie MAc followed suit soon afterwards and they may here as well.
It looks like they re-thought this new rule and are almost repealing it. At least they have made some changes that should be positive for investors. here is the wording from Fannie Mae:
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.
This is good news for investors. As always, call or email me if you have questions or scenarios.
Make it a great day!
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