GREAT NEWS--FANNIE MAE TO ALLOW UP TO 10 FINANCED PROPERTIES

GREAT NEWS--FANNIE MAE TO ALLOW UP TO 10 FINANCED PROPERTIES

Give me a call--I'll be pleased to provide more FNMA details and search for the right property for you. Also you can visit www.thechaseadvantage.com to conduct your own search.

One of the biggest hurdles many solvent investors have had these days is Fannie Mae’s (FNMA) limitation on the number of one- to four-unit financed properties. This limit dropped to four properties over the last year or so, which has hamstrung many investors looking to add to their real estate portfolio.

However, according to FNMA Announcement 09-02, borrowers may now have up to ten financed properties without having to pay the higher rates of private or hard-money resources. In the current lower price and low rate environment, this increased limit is an extremely beneficial change.

For those looking to purchase more properties, this new limit also comes with some new guidelines:

• Minimum credit score is 720
• The borrower(s) cannot have had a bankruptcy or foreclosure in the past seven years
• There can be no mortgage delinquencies (30-days or greater) within the past 12 months on any mortgage loan
• Maximum loan to value is 75% for purchase of a 1 unit second home or investment property
• Maximum loan to value is 70% for purchase of a 2-4 unit investment property
• Full income documentation is required including most recent two-year’s IRS 1040’s
• Refinances are allowed on a no cash-out basis and with a loan to value limit of 70%.