OK, I have said some disparaging things about Fannie Mae in the past, and with justification. But when they do wake up and smell the coffee, I’m buying!
Fannie Mae now understands that investors, (the real ones, not the hairdresser who moonlights as a property maven!), can be a contributing factor to the recovery of the housing market and take advantage of Tampa Bay mortgage rates.
Fannie Mae has eased up on the stipulation that a person cannot finance another investment property or 2nd home if they currently own more than four financed properties in total. They have updated the limit to ten and are instituting guidelines that are going to separate valid investors from the garden variety type. Investors now need:
- Six months of loan payments in reserve for each financed property per investor
- A down payment of 25% for each property
- A FICO of 720 or higher
So instead of the no money down, insufficient reserves, and inexperience (to name just three of the factors that contributed to the investor/speculator contribution to the housing catastrophe), Fannie Mae is taking a stand by financially vetting the investor and making it possible for the genuine ones to sop up some of the sales in this housing glut!