Is the Sky Opening? Fannie Mae Shines on Investors by Increasing the Mortgaged Property Limit from 4 to 10

By
Mortgage and Lending with AMEC Home Loans | NMLS# 150953 NMLS 274839

Less than 30 days into the new administration, Fannie Mae released information on their new change to roll back a very unpopular guideline change that occurred less than 12 months ago.

Fannie Mae BuildingInformation from the revision to the Selling Guide says" Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fied investors. Experienced investors play a key role in the housing recovery and Fannie Mae's continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation's housing system".

On the onset of Spring, Investors will once again have the opportunity to own and finance up to 10 individual properties. The change is in effect on March 1, 2009 but it is important for Investors to be aware of the restrictions that are attached to this change:

Investors who are purchasing their 5th through 10th home will be required to meet the following minimum requirements: For a complete illustration of the changes, see Fannie Mae's Announcement 09-02.

Okay, here is a snapshot of the credit restrictions:

  • 720 credit score
  • 25% down payment for 1 unit properties and 30% for 2 to 4 unit properties
  • Cannot have any late payment on a Mortgage in the past 12 months
  • Will require 6 months of reserves for each property (Principal, Interest, Taxes and Insurance + any Association Dues, etc).

This is a good sign for Investors who can meet the above criteria - It would appear that Fannie Mae is seeing the light. There are experienced investors who meet the limitation, and can play a "key role" in housing recovery.

There is one more important point to make . . . Investors that had been stymied by the previous restrictions can now take advantage of the refinance opportunities that had limited them over the past 12 months.

Let's hope that this change will promote foreclosure liquidation which will provide support to the housing market as a whole. . 

Fannie Mae 2009 Changes can be viewed here:  

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net

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Gwenn Tanvas is a Certified Mortgage Planning Specialists who truly enjoys working with First-Time Home Buyers and Government Programs such as FHA, Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. http://www.WisconsinLoanTips.com or http://www.WisconsinVetLoans.com she can also be reached for comment or to answer questions via email at gwenntanvas@gmail.com

 

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Topic:
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Wisconsin Outagamie County Appleton
Groups:
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Tags:
investment
financing
fannie mae
foreclosure
mortgage
refinance
property limit

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Rainer
179,139
Mark MacKenzie
Phoenix, AZ

Gwenn,

This is really good news.

Simply put, I don't see how the housing market can recover without real estate investment.  There simply are not enough first time home buyers that have the capital and credit that can make a meaningful dent in the excess inventory.

We need investors, and the next step is to repeal the Tax Reform Act of 1986 as it pertains to investment real estate. :)

Feb 10, 2009 03:30 AM #1
Rainmaker
1,050,491
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

That is a good start, a 30% equity position will make these mortgages pretty safe, now they have to lower the rates to make them cash flow so they are worth buying. When the old inventory clears out a bit it will help with other sales.

Feb 10, 2009 03:33 AM #2
Rainmaker
1,402,493
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

This is awesome news. There really are so many amazing buys available in our marketplace that merit consideration of the investor market.

Feb 10, 2009 04:11 AM #3
Rainmaker
77,718
Gwenn Tanvas NMLS# 274839
AMEC Home Loans | NMLS# 150953 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Mark:I agree that we need investment in Real Estate in order to turn the corner. This appears to be a positive sign, but there does need to be more change to stimulate the market. Thanks for stopping...

Steve:It is apparent that they made the change with the experienced investor in mind. Yes, the rates are another hurdle. As least they are on the right track and perhaps when they see that the risked based premiums are in the way, they may make an adjustment in the matrix to reduce the hits for higher credit borrowers.

Vickie: There are many great buys on the market. It would be great to some movement as the result of this positive change.

 

Feb 11, 2009 11:02 PM #4
Rainer
35,002
Lisa Southern
Lisa Southern Real Estate - Raleigh, NC
Lisa Southern Real Estate

Gwenn,

 I hadn't heard this news. My next phone call is to my lender to confirm, then on to my investors!

Thanks,

Lisa

Feb 12, 2009 06:29 AM #5
Rainmaker
77,718
Gwenn Tanvas NMLS# 274839
AMEC Home Loans | NMLS# 150953 - Appleton, WI
The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE

Lisa: Go Get Em! It is effective March 1st -

Feb 12, 2009 06:31 AM #6
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Rainmaker
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Gwenn Tanvas NMLS# 274839

The Mortgage Gal, 920.267.7891~ SMART - INNOVATIVE
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