New Guidelines Issued from Fannie Mae

Hi Everyone,

 

Attached are the new guidelines issued from Fannie Mae - The new policy allows for a borrower to have up to 10 financed properties,  however here are a couple of key points to pay attention to:

 

Loan-to-Value:

Purchases on 2nd homes and investment properties are limited to 75% LTV

Limited Cash-Out Refinances on 2nd homes and investment properties are limited to 70% LTV

2-4 Units are limited to 70% LTV

 

Credit:

Low FICO score cannot drop below 720

Bankruptcy and/or foreclosure must have 7 years seasoning

No mortgage lates over the last 12 months

 

Income:

Regardless of DU findings rental income must be verified with 2 years tax returns

 

Cash Reserves:

6 months reserves (PITI) on subject and all financed properties. In addition for investor purchases for borrowers who own 1-4 financed properties cash reserves have been increased from 2 to 6 months.