Multiple Mortgages to Same Borrower

February 6, 2009

Fannie Mae has increased the number of financed properties from four to up to ten for borrowers wishing to purchase a second home or investment property.  The new guidelines are as follows:

Purchase - 1 unit - 75% Loan to Value - 720 Credit Score
Rate/Term Refinance - 1 unit - 70% Loan to Value - 720 Credit Score
Purchase and Rate/Term Refinance - 2-4 unit - 70% Loan to Value - 720 Credit Score

Other Underwriting requirements:

 NO bankruptcy or foreclosure within past 7 years
No 30 day lates on mortage in last 12 months
Documented rental income for past 2 years

Reserves are required

1 to 4 properties

2 months PITI (subject property) for 2nd home
6 months PITI (subject property) for Investment Property
2 months on each other financed property

5 to 10 properties

2 months PITI (subject property) for 2nd home
6 months PITI (subject property) for Investment Property
6 months on each other financed property

Multiple Mortgages to Same Borrower

February 6, 2009

Fannie Mae has increased the number of financed properties from four to up to ten for borrowers wishing to purchase a second home or investment property.  The new guidelines are as follows:

Purchase - 1 unit - 75% Loan to Value - 720 Credit Score
Rate/Term Refinance - 1 unit - 70% Loan to Value - 720 Credit Score
Purchase and Rate/Term Refinance - 2-4 unit - 70% Loan to Value - 720 Credit Score

Other Underwriting requirements:

 NO bankruptcy or foreclosure within past 7 years
No 30 day lates on mortage in last 12 months
Documented rental income for past 2 years

Reserves are required

1 to 4 properties

2 months PITI (subject property) for 2nd home
6 months PITI (subject property) for Investment Property
2 months on each other financed property

5 to 10 properties

2 months PITI (subject property) for 2nd home
6 months PITI (subject property) for Investment Property
6 months on each other financed property