Fannie Mae empowers real estate investors!


Fannie Mae empowers real estate investors!
By Scott Rogers • February 14, 2009
Fannie Mae's current policies don't allow an investor to finance any more than four properties backed by Fannie Mae. Thus, if you own the home you live in, you could only purchase three additional properties as an investment. This has directly affected several of my clients who have had to stand on the sidelines, or seek a commercial loan as they considered recent investment purchases. THE GOOD NEWS --- effective March 1, 2009, an investor will now be able to finance up to 10 properties through Fannie Mae! Fannie Mae does, however, put some rather significant limitations on this new policy. This summary is my interpretation of the new policy, but I encourage you to talk to read the policy yourself as well: The highest loan-to-value ratio will be 70%. The borrower must have a minimum credit score of 720. No bankruptcy/foreclosure during the past 7 years. No mortgage delinquencies (30+ days) in the past 12 months. Rental income on proposed and current properties must be documented. Reserves must be shown for the proposed and current properties. Again, these changes won't go into effect until March 1, 2009, but if you meet the criteria listed above, you'll soon have significantly greater financing options on investment purchases. This is great news for the investors who have keyed in on good opportunities in our market but who have been called back to the sidelines due to this financing restriction. Thanks to Jeremy Hart, a fantastic Realtor in Blacksburg, VA for bringing this to my attention! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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