Good news for investors. Fannie Mae has modified their investor guidelines to allow up to 10 financed properties to the same borrower. Previous guidelines allowed financing for only 5 properties and additional property purchases had to be paid for in cash. The modifications to the guidelines come with a stipulation; the borrower has to have money in the bank for reserves.
- When the borrower will own a total of one to four financed properties, the reserve requirements for PITI (Principle, Interest Taxes and Insurance) are:
- Two months reserves if new property is a 2nd home or
- Six months reserves if new property is an investment property and
- Two months reserves on each other financed second home or investment property.
- When the borrower will own five to ten financed properties, the reserve requirements (PITI) are:
- Two months reserves on new property if it is a second home or
- Six months reserves on new property if it is an investment property and
- Six months of reserves on each other financed second home or investment property.
This guideline change is good news for investors allowing them to purchase additional properties they may not have been able to purchase under the previous guidelines and a welcomed positive step in the right direction to help in reducing some of the excess inventory especially short sales and foreclosure properties. For more information about Fort Lauderdale Homes for Sale , Investment properties and available Fort Lauderdale condos for sale, contact John Sabia at 954-850-2397.