Fannie Mae Announces 4 Property Limitation to be Removed
This is great news for investors and for the US real estate market. Quality investors have been made to sit on the sidelines for several months now due to the limitation of 4 properties owned by any single investor.
Here is the announcement:
"Fannie Mae is committed to providing financing opportunities for high-redit quality, bona fide 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."
Fannie Mae's criteria:
- Credit Score of 720 or higher
- Downpayment: 25% on Single Family and 30% on 2-4 family
- No bankruptcy or foreclosure in past 7 years
- No 30-day lates on any mortgage for past 12 months
- Full documentation of all rental income (2 years tax returns)
- 6 months reserves on ALL properties (that means that if their PITI payments are $1,000 each on 6 properties, they will need $6,000 (times) 6 months, or $36,000 in reserves.)
This goes into effect on March 1st, 2009.
TurfirrifeBar
Jun 28