Friday, February 20, 2009

Good News For Investors!

Real Estate = Big MoneyImage by thinkpanama via Flickr

Fannie Mae now allows up to 10 financed propertiesLast Friday, 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% downpayment 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 sizeable downpayment 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 finally participate in the ongoing conforming mortgage Refi Boom. Until now, they've been stymied by the 4-property restriction, too.

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5 comments:

Adams06 said...

Wow!

You have a cool blog here. Thanks a lot for sharing it.

The first step to financial freedom is to correctly identify potential real estate investments. The most important aspect to consider is a property’s profitability. Property investment can also make a great second income for those who don't choose to live in the apartment, house or villa. Renting the property out is the perfect way of getting your foot on the property ladder in a foreign country.

Stewart said...
This comment has been removed by the author.
Sandy said...

Hi ,
Thanks for the information.
Investing in real estate is not an easy thing and therefore requires that anyone who wants to follow this venture be bold and be prepared to make hard decisions. As a starting point, you need to understand the intricacies of the business so that you are in a position to make the most of your investment after all information is power. Therefore collect as much information as you can. Sources of information are endless nowadays. The internet has an electronic real estate investment guide that you can use to find exactly what you are looking for. Real estate magazines are also a good source of information and they also offer tips on real estate investing.

Noc said...

When we talk about trustworthy investment courses, real estate investing courses is the paramount affluence-builder in the world. We have briefly mentioned about more than a few kinds of real estate investment. Nevertheless, as you might have estimated, we have only touched the facade. Inside these instances there are innumerable distinctions of real estate investments. As in the case of any investment, make vigilant decisions and evaluate the expenses and profits of your actions before taking the plunge.

Johnny said...

Hi,
The information is quite good and useful.

Another way to make money in real estate. In fact there are thousands if not millions of real estate investors who become rich by flipping several types of properties including apartments, condos and commercial buildings. But of course, before you achieve your dreams you have to follow certain tips that may help in handling your business properly, Try to consult experts and ask for the methods that are suitable for you.