Feb

16

Fannie Mae Loosens Credit for Home Investors

Filed Under Government, National Market 

Last week Fannie Mae announced it would reverse their policy limiting investors to four properties. The change will go in effect on March 1, 2009. Last year Fannie Mae introduced the restriction while under close scrutiny from the government for their lending practices.

Fannie Mae is now changing their policy to allow investor and second home borrowers to own up to ten financed properties provided they meet certain eligibility and underwriting requirements as outlined in the following release:

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 and Fannie Mae’s continued support for investor borrowers is consistent with its mission to provide stability, liquidity, and affordability to the nation’s housing system. To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower to allow five to ten financed properties per borrower, with certain eligibility, underwriting, and delivery 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.

https://www.efanniemae.com/lc/newsletters/sfnews/0209mortgages.jsp

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