C Tann-Starr's Outside Blog

head_left_image

Fannie Mae Officially Eliminates its 4-Financed Property Limit

 

Fannie Mae now allows up to 10 financed propertiesFriday, Fannie Mae rolled-back one of its least popular mortgage guidelines updates of the last 12 months.

Effective March 1, 2009, real estate investors can once again own and finance up to 10 individual properties.  The restriction reversal does come with new minimum requirements, however. 

Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home must meet the following standards, as set forth by Fannie Mae:

  1. 720 credit score
  2. 25% down payment for a 1-unit (30% for a 2-4 unit)
  3. No mortgage delinquencies in the last 12 months
  4. 6 months of reserves for each investment property

In other words, Fannie Mae is re-opening the lending spigot for real estate investors with good credit, a sizable down payment and ample reserves. 

According to Fannie Mae, the change rationale is that experienced investors can "play a key role in the housing recovery".  Until now, foreclosure auctions have gone at less than full speed because investors unable to pay cash have been halted by the existing 4-property Fannie Mae limit. 

Going forward, expect a more expedient foreclosure liquidation nationwide which should, in turn, provide further support for the housing market.

And lastly, not to be forgotten, homeowners with more than 4 properties can finallyparticipate in the ongoing conforming mortgage Refi Boom. Until now, they've been stymied by the 4-property restriction, too.

Disclaimer: Any comments and contributions provided on ActiveRain.com (or other electronic or print media) does not establish an agency relationship with any third party. Blog posts are intended to be informational only. Please be advised that real estate practices vary in regions and from state to state and market to market. The information contained herein does not constitute legal advice. All parties in need of legal, accounting, tax, or real estate guidance are directed to consult with the licensed professional of their choice. Please seek specific guidance from a retained professional in the specific field(s) required to service your interests. I and/or team blog writers make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this web site and its associated sites inclusive of but not limited to CarolynTannStarr.com MySpace/TannStarr 46486 NY Working Moms Examiner ActiveRain Group Club Chaos ClubChaosAgents.com CyberMinions.net CTannStarr Outside Blog CTannStarr Localism Blog TannStarr.net UberMental.com

© Carolyn Tann-Starr, 2008-2015. Unauthorized use and/or duplication of this material without express and written permission from the re-blog authors (when appropriate)and Carolyn Tann-Starr is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Carolyn Tann-Starr, (the re-blog authors when appropriate) and Wordy C's Blog with appropriate and specific direction to the original content.

 

Carolyn Tann-Starr Outside Blog Outside Blog Minion Report on Facebook Carolyn Tann-Starr on Blogger  CTannStarr on Twitter Tann Starr on YouTube TannStarr.net

Tann Starr on iTunes

Tann Starr on IMDb

Kim Harrison  Vicki Pettersson  Jocelynn Drake  Jaye Wells  Amy DeZellar  Lynn Rush  Jeannie Holmes

Ward Nasse Gallery

Kendall Grey  Jeaniene Frost  Faith Hunter  Stacia Kane  Sherry Soule

Alicia Anderson: Touched By People Places and Things

CarolynTannStarr.com

Tann Starr on Amazon.com

Life With Wee People

Outside Blog Minion Report

MySpace

Ask me something...

Tann Starr on Jango Music

Tann Starr on Blip.fm

Felix Lipov, Official Photographer, Ambassadors of Chaos

 

 

 

Comment balloon 9 commentsC Tann-Starr • February 10 2009 05:47PM

Comments

Hi Carolyn, well that IS good news! It's a welcome relief to allow savvy investors back into the game. It should help inventories & communities alike!

Posted by Marian Gregor-Ann, Arbor area Real Estate (Keller Williams) almost 12 years ago

This was a great re-blog, i also reblogged it!

Posted by Jeannette Neerpat, e-Pro Coral Springs/Parkland Real Estate (CondoDomain.com) almost 12 years ago

Hi C, this is good news and a step in the RIGHT direction, thanks for sharing this info!

Posted by Teresa Harris, Denver . Lake Norman . Charlotte (Lake Real Estate, LLC) almost 12 years ago

Wow!!!! FINALLY the Feds get it. I wonder what took them so long...

Posted by TeamCHI - Complete Home Inspections, Inc., Home Inspectons - Nashville, TN area - 615.661.029 (Complete Home Inspections, Inc.) almost 12 years ago

Marian, I am so glad they did this because two of my commercial buyers stopped looking because they already owned three 3-family homes and wanted a 5 and a 6 family unit. Being capped at 4 ruined our shopping spree. I'm going to give them a call later. :-)

Thank you, Jeannette. :-)

Teresa, I agree. Things were winding down a bit there...

Michael, I've been wondering that myself (LOL).

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 12 years ago

Carolyn, Thanks for the info...already let a couple of my investors know because this is great news!

Posted by Barb Szabo, CRS, E-pro Realtor, Cleveland Ohio Homes (RE/MAX Trinity Brecksville Ohio) almost 12 years ago

Barb, very good news indeed. I'm looking forward to 2009 and all of the possibilities it holds.

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 12 years ago

C,

For some reason I thought that someone would have to roll back that guideline.  With all of the abused REO & Foreclosed properties out there and nobody to buy them what else could they do?

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) almost 12 years ago

Don, they should have done this sooner, but I guess better late than never. :-)

Posted by C Tann-Starr (Tann Starr & Associates, Inc.) almost 12 years ago

This blog does not allow anonymous comments