announces changes of multiple mortgages to the same borrower.
Calling all investors. For loans delivered after March 1, 2009 FNMA is relaxing the 4 properties maximum rule, to a total for ten properties.
The guidelines will be that a 720 fico score is required and the combined loan to value will be 70 to 75 percent, depending on the type of property. They are also changing the total house costs from principal, interest, taxes and insurance (PITI) to principal, interest, taxes, insurance, plus home owners association dues, special assessments, ect. (PITIA)
Is this the thing that the market has been waiting for? Increasing the number of properties for qualified investors is a big step in the right direction. Fannie Mae has finally recognized the realities of the market place. By allowing qualified investors to take advantage of the low interest rates, it can only help to locate a bottom of the market. This is a bold move by FNMA to open up the restrictive lending practices we have seen over the last couple of years. Lets hope this will lead to a few more changes in the future.
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