Since these two organizations are forever changing rules/guidelines - which are often critical to many of our businesses - I thought we should have a thread, in which we might keep ourselves up-to-date on the latest policies.
As of April 4, 2009 Fannie Mae will increase their current restriction of a max of 4 financed properties BACK to 10!
Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery (duhhhh!) 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 is updating the policy that pertains to multiple mortgages to the same borrower. Fannie Mae's current policy limits the number of one- to four-unit financed properties in which the borrower may have an individual or joint ownership interest to four financed properties when the mortgage being delivered to Fannie Mae is secured by an investment property or second home.
The limitation on the number of mortgages currently being financed applies to the total number of properties financed, not just the number of mortgages sold to Fannie Mae. Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement.
The new guidelines include a 720 minimum credit score and 20% down for 1 units and 25% down for 2-4 units!
Here some more rules...
As of April 4, 2009 Fannie Mae will increase their current restriction of a max of 4 financed properties BACK to 10!
Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery (duhhhh!) 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 is updating the policy that pertains to multiple mortgages to the same borrower. Fannie Mae's current policy limits the number of one- to four-unit financed properties in which the borrower may have an individual or joint ownership interest to four financed properties when the mortgage being delivered to Fannie Mae is secured by an investment property or second home.
The limitation on the number of mortgages currently being financed applies to the total number of properties financed, not just the number of mortgages sold to Fannie Mae. Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement.
The new guidelines include a 720 minimum credit score and 20% down for 1 units and 25% down for 2-4 units!
Here some more rules...
- The borrower cannot have any history of bankruptcy or foreclosure within the past seven years.
- The borrower cannot have any delinquencies (30-day or greater) within the past 12 months on any mortgage loans.
- Rental income on the subject investment property must be fully documented.(Rental income from other properties owned by the borrower must be supported by two years' federal income tax returns)
- The borrower must complete and sign Form 4506 Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return
- The borrower must have reserves for the subject property and for other properties currently owned by the borrower.
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