I received this email last week about new, more relaxed rules from Fannie Mae for investment properties.
This morning we received notification that Fannie Mae will modify their rules regarding investment properties. Currently there is a limit of 4 properties per borrower.
New rules effective March 1st
Home borrowers can own 5-10 properties provided;
1. Loan to value is 75%
2. FICO is 720
3. No Delinqincies within the past 12 months
4. Rental income must be documented using tax returns
5. Reserves requirements;
– 1-4 properties; 2 months if a second home, 6 months if investment property and 2 months all other properties
– 5-10 properties; 2 months for second home, 6 months if investment properties and 6 months all other properties.
Suburban Mortgage Inc.
8377 Hartford Drive, Suite 120,
Scottsdale Az 85255
Cell 480 415 2336
Another lender summarized the new policy (actually it’s returning to the previous policy from about a year or so ago) this way; Home Owners buying property #5 or more must meet the following standards; 720 fico score, 25% down payment, and 6 months of PITI reserves left over after closing for each investment property.