Fannie Mae Investor Loan Update! Good News: Finance up to 10 properties!
Good News! Real Estate Investors Can Help Stimulate the Ecomony!
Effective March 1, 2009, real estate investors can once again own and finance up to 10 individual properties. The new requirements are as follows...Buyers buying a 5th, 6th, 7th, 8th, 9th or 10th property must meet the following standards, as set forth by Fannie Mae:
720 Credit Score
25% down payment for a single family unit (30% for a 2-4 unit)
No mortgage delinquencies in the last 12 months
6 months of reserves for each investment property
In other words, Fannie Mae is re-opening the lending spigot for real estate investors with good credit, a sizeable down payment and ample reserves!
According to Fannie Mae, the change rationale is that experienced investors can "play a key role in the housing recovery". Until now, foreclosure auctions have gone at less than full speed because investors unable to pay cash have been halted by the existing 4-property Fannie Mae limit.
Going forward, expect a more expedient foreclosure liquidation nationwide, which should in turn, provide further support for the housing market.
And lastly, not to be forgotten, property owners with more than 4 properties can finally participate in the ongoing conforming mortgage refi boom! Until now, they've been stymied by the 4-property restriction, too.
Happy house hunting, investors! 