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Showing posts from February 8, 2009

Good News for Real Estate Investors

While I may have my doubts about the proposed home buyer tax credit, I have no such doubt about Fannie Mae's latest 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, bonafide 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 purchases70% maximum loan to value for refi's, including "cash-outs," to the limit (ok, that assumes that you have that still much equity left in the property)Starting March 1, 2009Ok, truth be told, the four building restriction was only announced last fall and went into effect in December, so it was only a thorn in our sides for what, five weeks? But it most certainly was a thorn in the side of many investors. Why did the government stick it? Lenders needed to try to stem the tide of defa…