Fannie Mae’s latest bombshell pronouncement.
On Friday, Fannie Mae announced that it is removing the “four property” cap it imposed on real estate investors last year and will now fund loans to “high-credit quality, bona fide investors” for the purchase of up to ten investment properties.
The loan guidelines are reported as:
- 720 minimum credit score
75% maximum loan to value for purchases
70% maximum loan to value for refi’s, including “cash-outs,” to the limit (ok, that assumes that you have that much equity left in the property)
Starting March 1, 2009
Ok, truth be told, the original four building restriction was only announced last fall and went into effect in December 2008, so it was only a thorn in investor’s sides for what, five or six weeks? What’ going on with Fannie Mae? They Create restrictions, and change them a few weeks latter? Sounds like a plan to me.
Is this a good idea? Or is this going to explode onto the taxpayers?
As a broker, I must confess this actually helps me with my investment clients.
