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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: loans for over 4 properties Posted by CC in OC on May 29, 2009 at 10:52 PM In Reply to: loans for over 4 properties posted by kathy on May 29, 2009 at 9:23 AM Fannie/Freddie changed their guidelines to allow up to 10 investor loans. The challenge remains to find LENDERS that will follow Agency guidelines. Here are the guidelines from Flagstar Bank. RESERVES -- For FNMA and FHLMC transactions, borrowers are required to have a minimum level of 6 months cash reserves to be eligible for financing of investment properties. Reserves are calculated based on the subject property P.I.T.I. When multiple mortgages made to the same borrower are delivered to us, the borrower must satisfy this cash reserve requirement for each of the mortgages – the total liquid reserves must be document to satisfy the total reserve requirement for all of the mortgages when multiple mortgage are being made to the same borrower. MULTIPLE MORTGAGES TO THE SAME BORROWER – For FNMA, if a new mortgage is secured by an investment property, the borrower may not own more than ten properties (includes his/her principal residence) that are currently being financed. This limit applies to any combination of ownership in 1-4 family properties. Refer to DOC 5351 for all transaction in which the borrower owns 5-10 financed properties. For FHLMC, if a new mortgage is secured by an investment property, the borrower may not own more than four properties (includes his/her principal residence) that are currently being financed. This limit applies to any combination of ownership in 1-4 family properties.. Additionally for FHLMC, for borrowers who own more than one financed investment property, the new subject investment property mortgage must be a 15-, 20-, or 30-year fixed rate mortgage or a 7/1 or 10/1 ARM only. Also, FHLMC requires evidence of rent loss insurance for the subject property if rental income is being used to qualify. Properties owned by an LLC or non purchasing spouse will be counted toward financed property limitations. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Fannie/Freddie changed their guidelines to allow up to 10 investor loans. The challenge remains to find LENDERS that will follow Agency guidelines. : Here are the guidelines from Flagstar Bank. : RESERVES -- For FNMA and FHLMC transactions, borrowers are required to have a minimum level of : 6 months cash reserves to be eligible for financing of investment properties. Reserves are calculated : based on the subject property P.I.T.I. When multiple mortgages made to the same borrower are : delivered to us, the borrower must satisfy this cash reserve requirement for each of the mortgages – : the total liquid reserves must be document to satisfy the total reserve requirement for all of the : mortgages when multiple mortgage are being made to the same borrower. : MULTIPLE MORTGAGES TO THE SAME BORROWER – For FNMA, if a new mortgage is secured by an : investment property, the borrower may not own more than ten properties (includes his/her principal residence) : that are currently being financed. This limit applies to any combination of ownership in 1-4 family properties. : Refer to DOC 5351 for all transaction in which the borrower owns 5-10 financed properties. For FHLMC, if a : new mortgage is secured by an investment property, the borrower may not own more than four properties : (includes his/her principal residence) that are currently being financed. This limit applies to any combination of : ownership in 1-4 family properties.. Additionally for FHLMC, for borrowers who own more than one financed : investment property, the new subject investment property mortgage must be a 15-, 20-, or 30-year fixed rate : mortgage or a 7/1 or 10/1 ARM only. Also, FHLMC requires evidence of rent loss insurance for the subject : property if rental income is being used to qualify. Properties owned by an LLC or non purchasing spouse : will be counted toward financed property limitations. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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