Great news for investors - and evidence that the government is waking up. With 100's of millions of dollars parked and lending more and more difficult, Freddie and Fannie have realized that investors are good for the economy and will help revitalize the property market. They couldn't be more right. This is an open doorway or investors to reap huge benefits in the next couple of years. For my business, this is HUGE! And, the added benefit is that investors can finance first time home buyers and credit challenged buyers. Its a win win for all. See below the details!
Multiple Mortgages to the Same Borrower and Reserve Requirements Changes
Fannie Mae has issued Announcement 09-02, Updates to Multiple Mortgages to the Same Borrower Policy, Reserve Requirements, Reserves Definition, and Form 3170.
Multiple Mortgages to the Same Borrower
To help support housing recovery, we are introducing an expanded policy regarding multiple mortgages to the same borrower. Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery and Fannie Mae’s continued support for investor borrowers is consistent with our mission to provide stability, liquidity, and affordability to the nation’s housing system.
To support prudent lending for housing investment, Fannie Mae is changing our current limit of four financed properties per borrower when the mortgage being delivered to Fannie Mae is secured by an investment property or second home. We will allow five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70–75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any investment property or second home loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages.
Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery into MBS with purchase dates on or after March 1, 2009
Investors come forth!
No comments:
Post a Comment