Fannie Mae has changed its 4-property limit for investors and will now allow those who qualify to finance up to 10 properties.
The lending requirements are stringent, and inexperienced investors need not apply.
Limits include 25% down, high credit scores with no bankrupcty, foreclosure or delinquencies, and consent for Fannie Mae to view tax records held by the IRS.
Investors will also need to provide two years documented rent history on current investments, and ante up some reserves.
The previous restrictions have hampered interested home buyers, which contributed to falling prices. Investors across the country are cheering this new opportunity to grab up some deals and get back in the game.
Fannie Mae says its a win-win:
“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 its mission to provide stability, liquidity, and affordability to the nation’s housing system.”