Is Fannie Coming Around?

February 7, 2009 2 Comments

Yesterday, Fannie Mae announced they are raising the maximum number of financed properties you are allowed to have from 4 to 5-10 with “certain restrictions”:

Multiple Mortgages to the Same Borrower
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.

You’ll also need to prove liquid reserves equal to 6 months’ PITI per property and there are no seller 2nd’s allowed but, hey, it’s a step in the right direction!

Financing
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2 Responses to “Is Fannie Coming Around?”

  1. R Reply February 8, 2009 at 10:25 am

    Screw Fannie & Freddie!
    Just put each of your properties into a simple land trust and nobody knows who owns them except you, your LLC & your Trustee; and he/she can’t divulge who the beneficiary is.

  2. Mary Ann Gass Reply February 28, 2009 at 2:44 pm

    Thanks Susan Lassiter Lyons

    I am a buyers consultant here in New York City and I need to update information all the time.

    This week I’m emailing all the mortgage people to whom give referrals for updates.

    Thanks again,

    Mary Ann Gass