Sometimes in life, I have to bounce off the proverbial "both walls" to find myself in the middle. The middle is often where I want to be in many respects.
With this banking crisis, it was obvious to me and many others, that banks were off kilter for a long time. Focused only on profits and marginal underwriting, they had a wonderful strategy......if only the market continued. Now they're bouncing off the other wall of ultra-conservativism, making excuses and blaming.
Today I got an email that might indicate they may be returning to the middle of the boat and relative sanity.
Text below. Let's hope :)
URGENT ---- Update for the NEW Rules for Investment Property from Fannie Mae
I hope you don't mind this email blast. This will help ALL investors tremendously.
This is hot off the presses, directly from Fannie Mae's website. Apparently Fannie Mae has reconsidered the loan limit for investors.
Fannie Mae will allow investors to hold 5-10 mortgages and still get Fannie Mae backed loans. This apparently will start as of 3/1/2009 and will be announced on Monday 2/9/2009.
The reserve and qualifying criteria for the 5-10 loan range will be more stringent, as well as the down payment requirements. This change still is a major improvement over 4 properties. This should make a real dent in the uptake of the excellent deals available in some markets by experienced investors.
Announcement 09-02, Updates to Multiple Mortgages to the Same Borrower Policy, Reserve Requirements, Reserves Definition, and Form 3170.
1) full Doc
2) Min credit score 720
3) Max LTV 75% for SFR and 70% for MFR for rate and term
4) Max LTV min cash out ($2,000) 70%
5) 6 months PITI plus the current and 6 months reserves piti for all other properties
Borrowers are going to need great plus cash reserves to get these programs.
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