Fannie Mae Updates Policies: Allows Ten Financed Investment Properties
2/9/2009 2:27:30 PM
Fannie Mae announced a new policy on February 6, 2009, to allow investors and second home buyers to own up to 10 financed properties. The new policy takes effect on March 1, 2009, and replaces the current 4-property limit. The restriction applies to the total number of financed properties, not just to the number sold to Fannie Mae.
Investor and second home borrowers that seek to own between 5 and 10 financed properties must meet additional eligibility requirements. A few highlights are listed below, but click here for all the details.
-Borrowers must have a credit score of at least 720. The maximum loan-to-value ratio is 70% or 75%, depending on specified criteria.
-Borrowers may not have any history of bankruptcy or foreclosure in the past 7 years, or any mortgage delinquencies of 30 days or greater within the past 12 months. Reserve and other requirements also apply.