Can one of you mortgage experts explain the change?

Question

Fannie Mae and Freddie Mac have both announced programs that provide long-term financing at competitive interest rates to help investors refinance and acquire SFR properties. READ MORE

I'm wondering if someone could elaborate. Are we still limited to ten purchases? It says "SFR" but does that still include duplexes, triplexes, and fourplexes? Can anyone provide a real-world scenario to show how this would affect someone's buying power (old financing vs. new)?

Andrew Postell · Answer

@Nathan G. thanks for posting about this. This article is speaking about the business loans that Fannie/Freddie grant. This does not impact their appetite for loans that are granted to you and I directly from the agencies. Those business loans can be used by a lender to lend to Single Family homes. This was not a business loan product that Fannie/Freddie offered 12 months ago. The article even talks about the loans being offer from the lenders that receive the funds from Fannie/Freddie can have loans UP TO 10 years in length. That's not what most investors want. Most investors want a 30 year fixed rate...which means we should go to Fannie/Freddie for their conventional loan products. We will still be within the same regulatory rules that were in place yesterday and will be for the foreseeable future. You will be limited to 10 loans, etc. Hope this helps in some way. Thanks!

Can one of you mortgage experts explain the change?

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