By: Dennis Norman
Beginning March 1, 2009, new rules will go in effect by Fannie Mae changing the limitation on the number of mortgages an investor may have and still be eligible for Fannie Mae financing from four to up to ten.
In these very challenging times and, with banks clamping down, this is welcome news for investors! In connection with this change there are also changes being made to the qualifications and guidelines for multiple mortgages to the same borrower including:
- Maximum LTV of 75% on single family properties, 70% on 2-4 families
- Minimum credit score of 720
- No history of bankruptcy or foreclosure within the past seven years
- Rental income must be supported by two years tax returns and full documentation
- Borrower must have reser4ves for the subject property and for other properties currently owned.
This is a step in the right direction for investors. This also should provide an opportunity for many investors to take advantage of some of the great deals out there by increasing their rental portfolio.
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