Important announcement from Fannie Mae

Real Estate Agent with RE/MAX Hometown

Fannie Mae 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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Comments (7)

Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Mark -

This is a step in the right direction, Mark.  If they make sure they keep up credit qual on the investors who buy in multiples.


Feb 08, 2009 08:38 PM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

I do think this will help in that arena. It has been hard for investors to find funds and buy some really great deals out there.

Feb 08, 2009 09:23 PM
Randall Sandin
Carolina One Real Estate - Charleston, SC
843-209-9667 - Search for Charleston SC Real Estate

thanks for the update - that is great news for qualified investors

Feb 08, 2009 09:34 PM
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate


Great news. This should help to get some of the lower end properties off the market.


Feb 08, 2009 10:10 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Mark thanks for the post.  I hadn't heard that, but it's good news.  Rules are changing by the day it appears.

Feb 08, 2009 10:21 PM
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

I think this is very much a step in teh right direction. I myself am looking to start invest this year probably wont make it to 10 properties but on my way :)

Feb 08, 2009 10:39 PM
Dan and Amy Schuman
Howard Hanna Real Estate Services - Solon, OH
Luxury Home Specialists

Thanks for the info Mark. It seems like a proactive step and hopefully will get a lot of properties off the market this year.

Feb 09, 2009 12:16 AM