FannieMae Increases Property limits

As of  July 1, 2009,   Borrowers who own more than 4 properties can not get a Conventional Fannie Mae loan because no investors on the secondary market will buy these loans, even though Fannie Mae guidelines allow up to 10 properties.

FannieMae announced February 2, 2009 that muliple mortgages to the same borrower will increase from five (5) to ten (10).  This is  great news for Real Estate investors to take advantage of lower home prices to add to their portfolio of rental properties. FannieMae is committed to providing financing opportunities for high-credit quality, bona fide investors.  Everyone agrees that, expierenced Real Estate investors nationwide will play a key role USA's housing recovery.

Guideline Requirements

1)  720 Minimum FICO Purchase or Refincance.

2)  Purchase 1 unit  75% LTV,   2-4 units  70% LTV.

3)  Refinance 1 to 4 units  70% LTV unit.

4)  No Mortgage lates past 12 months any loan.

5)  No Bankruptcy or Foreclosure past Seven (7) years. 

6)  Rental income from other properties must be verified by two (2) year's federal tax returns.

Reserve Requirements

1 to 4 Finances Properties, including subject

1)  6 months mortgage payments subject property.

2)  2 months reserves for 2nd home & investments.

5 to 10 Financed Properties, including subject

6 months reserves subject, 2nd home & investments.

Definition Financial Reserves

FannieMae's definition of reserves to include all elements of the monthy property expenses (PITIA).

Examples are: Principal & interest, hazard, flood & mortgage insurance payments, real estate taxes, ground rent, special assessments, HOA dues and any subordinate or 2nd lien financing secured by the subject property.

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