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.
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