In an official announcement, Fannie Mae has rescinded the 4 property limit for investors. Back in September Fannie put a 4 property max cap for investors. This meant it was next to impossible to get affordable money to buy investment properties if you owned 4 or more. This rule was insane to me. Anyone that owns 4 or more properties in this environment (and still has them) obviously has some idea what they are doing.
There are some guidelines.
Min. credit score of 720
25% or more down payment.
No late mortgage payments in the last 12 months
No foreclosures and bankruptcies in the last 7 years
6 months reserves for the properties you currently own.
2 years of tax returns documenting your income from units.
I think think this is a good step in the right direction, but much more needs to be done to support investors and encourage investor buying. People are loosing their homes but still need a place to live. Investors will buy homes and provide rental housing. As a general rule, investors will clean up a houses and get them in a livable condition which will improve neighborhoods with dead lawns and vacant homes everywhere.
Let's face is many people that lost their homes due to short sale or foreclosure are not going to be in a position to buy anytime soon. This means a smaller pool of potential buyers for years to come. Investors can help fill some of that void.
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf
To further increase opportunities for investors, it's possible for those who don't meet the minimum requirements to pool resources with those who do.
Posted by: Ditech Home Loans | February 18, 2009 at 10:03 AM