We were all horrified when Fannie Mae limited investors to 4 financed properties last year. This limitation certainly did not help the housing market. The good news is that this month, Fannie expanded the guideline to allow 10 financed properties again. This is great news to real estate investors who want to refinance or buy new property.
The new rule will allow up to ten financed properties, as long as certain requirements are met. The announcement states: ” Fannie Mae is modifying this policy to allow investor and second home borrowers to own five to ten financed properties if they meet certain eligibility and underwriting and delivery requirements as outlined in this Announcement.”
There are eligibility and underwriting requirements that must be met to qualify. Some of the requirements are: a 720 minimum credit score, 70 to 75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type), no delinquencies in the past 12 months, and no bankruptcy or foreclosure in
the past 7 years. Additionally, there are higher requirements for liquid reserves.