There is about to be a major change in investment property... that could put some people who don't plan in a very tough situation.
Freddie Mac has just released information regarding new cuts that become effective on August 1, 2008. They are now restricting the number of financed properties a borrower can have to four total, including the subject property. These are 1-4 unit(s) properties, and the current restriction is 10 total properties.
Another change that takes effect at the same time is a seasoning restriction on refinancing an investment property of 6 months. Currently there is no restriction.
This will have a significant impact on the residential real estate market by limiting everyone, regardless of income, loan to value, credit scores, or assets.
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