Fannie Mae Loosens the Guidelines for Investors!
Did you hear? Here is the scoop: 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.
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
You can click here for all of the details: http://www.reiconferences.com/files/fanniemaechanges.pdf
Borrowers are going to need great plus cash reserves to get these programs, but the bottom line is that 2009 is already looking better than 2008 for investors! Every little victory counts!
To Your Success,
Charrissa Cawley
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