One of the tighter loan requirements imposed over the last year is a limit on the number of homes an investor can have financed with conventional loans, including a principle residence. Until this week, the rule was a limit of 4 homes. This made it extremely difficult for investors to take advantage of falling prices to increase their investment portfolio and contribute to reducing the glut of home inventory. The only other options were cash or “hard” money (short term loans with high interest rates).
However, Fannie Mae has just increased the number of allowable conventional loans, now allowing from 5 to 10 with a 720 minimum credit score. Check out more info from Rhonda Porter at Rain City Guide.
Update: Reserve and underwriting requirements.
Related posts:
- September 2009 Phoenix Area Months Supply Review It’s generally accepted that 6 months of inventory is a...
- Short Sale Tactics for the Buyer I read a question recently about what buyers can do...
- Want to use FHA for a condo purchase? Good luck. Changes are coming to FHA lending standards that will significantly...
