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.