Investors around the country are cheering as Fannie Mae announced this week that they are lifiting the 4 property limit for investors.?? Fannie Mae's official announcement reads:??
"Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery."
This is great news for experienced seasoned investors who will play an important role in the re-stabilization of the housing industry.?? In Fact Fannie Mae avoids lending to first time investors, or investors who do not have proven track record of success.
So for their part Fannie Mae will begin lending to investors who have an interest in 5-10 properties, but the loans are not with out guidelines:
- 25 percent down payment on the investment property;
- Minimum credit score of 720;
- No mortgage payments late within the last 12 months;
- No bankruptcies or foreclosures in the last seven years;
- Two years of tax returns showing rental income from all rental properties;
- Six months of principal, interest, taxes and insurance reserves on each of the financed properties.
"Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery."
To reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T.
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