Great Fannie Mae News!

[Samuel Kimani]

Fannie Mae makes an announcement today to raise the number of financed investment properties back to ten. Since October of 2008, Fannie Mae had lowered the number of financed investment properties a borrower could have to three. Starting again March 1st, 2009, the limit will go back up to 10 properties. This is BIG news to the real estate investor. I think we all knew that going down to three financed properties was too aggressive of a move. Fannie Mae sites its reason for the change as a means to help with the housing recovery effort. There will be however tighter guidelines and restrictions from the previous rules below are the new guidelines for financed properties from number 5 thru 10.
* The minimum credit score goes to 720
* 75% LTV for a Purchase and 70% LTV on a Limited Cash Out for 1 unit properties
* 70% LTV for a Purchase or Limited Cash out on 2-4 unit properties
* No Bankruptcies or Foreclosures for 7 years
* No delinquencies within the last 12 months on any mortgages
* In order to count the rental income from other rental properties the investor has, a two year look back is required from the borrowers Federal income tax returns.
* 6 months reserves will be required on each investment property that you own and the subject property.