Filed under: Loans/Financing/Credit, People and Business, Uncategorized | Tags: Fannie Mae loans, Fannie Mae standards, multiple properties, Rental owners
Investors will once again be able to get Fannie and Freddie loans for up to 10 properties. Recently, the limit had been ratcheted down to loans on only 4 properties, which was an impediment to rental owners.
The new program, effective March 1, 2009, is available for borrowers that own between 5 and 10 financed properties. This time around, the GSE’s (Fannie and Freddie) actually want some signs that the borrowers will repay. These minimums include:
∙ 25% down payment.
∙ Credit score of 720.
∙ No bankruptcy within 7 years.
∙ No mortgage delinquencies within the last year.
∙ Documentation of enough money to make 6 months payments on all the mortgages (Principal, Interest, Taxes, & Insurance) they have. These funds must be resting in their checking, savings, and/or retirement accounts/stocks.
Tom Freitag, a Eugene mortgage broker at Pacific Crest Loans fed me this information. He says that borrowers can choose between a 30 year fixed or a 5/1 ARM, but the ARM rates are actually worse than the 30 year fixed. Tom can be reached at: 868-1855
A nice benefit for rental owners is that they can refinance at today’s ultra low conventional, conforming loan rates!
Tom Freitag, Loan Broker. 868-1855
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