FANNIE MAE INCREASES THE NUMBER OF FINANCED INVESTMENT PROPERTIES TO 10!

By
Real Estate Agent with RE/MAX PREFERRED, REALTORS

Fannie Mae Increases the Number of Financed Investment Properties Back to 10

February 6th, 2009

Fannie Mae makes an announcement today to raise the number of financed investment properties back to ten.  Since October of 2008, Fannie Mae had lowered the number of financed investment properties a borrower could have to three.  Starting again March 1st, 2009, the limit will go back up to ten properties.  Fannie Mae sites the reason for the change as a means to help with the housing recovery effort. There will be however tighter guidelines and restrictions from the previous rules.  Below are the new guidelines for financed properties from number five thru ten:

* The minimum credit score goes to 720

* 75% LTV for a Purchase and 70% LTV on a Limited Cash Out for 1 unit properties

* 70% LTV for a Purchase or Limited Cash out on 2-4 unit properties

* No Bankruptcies or Foreclosures for 7 years

* No delinquencies within the last 12 months on any mortgages

* In order to count the rental income from other rental properties the investor has, a two year look back is required from the borrowers Federal income tax returns. 

* Six months reserves will be required on each investment property that you own and the subject property.

INVEST IN DALLAS FORT WORTH.  CONTACT ME FOR ASSISTANCE.

Comments (5)

Chris Oliver
Century 21, Preferred Properties - Reynolds Plantation, GA

Any move forward is a good one. Let's hope these little tweaks will bring out the investors and sop up this inventory.

Feb 09, 2009 03:41 AM
Anonymous
Renee

It will Chris, it will.

Feb 09, 2009 04:39 AM
#2
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

This is great news.  It will probably do far more for housing than any stimulus bill.

Feb 09, 2009 06:32 AM
Charles Fischer
Housing Market Realty - Merritt Island, FL
Professional Real Estate Services

This is good news, I believe that investors will be the key to getting this market moving again, and getting more money for them is essential.

Feb 09, 2009 11:02 AM
Lorrie Semler, REALTORĀ® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

What is the reasoning behind having an upper limit?  I would think in today's marketplace, Fannie Mae would encourage investors to make as many purchases as they can afford.

Feb 12, 2009 09:30 AM