Earlier this year, Fannie Mae increased the maximum properties financed limit to 10, giving Miami investors a ticket to the nation’s REO and Foreclosure Party. In its official announcement, Fannie Mae said upping the financed-property limit could stabilize housing.
“Experienced investors play a key role in the housing recovery”, it noted.
Fannie Mae’s guidelines on the 5-to-10 Properties Financed program are pretty clear. The group will guarantee investor mortgages where the applicant meets the following criteria:
- Owns between 5-10 residential properties with financing attached
- Makes a 25 percent downpayment on the property; 30 percent for 2-4 unit
- Minimum credit score of 720
- No mortgage lates within the last 12 months on any mortgage
- No bankruptcies or foreclosures in the last 7 years
- 2 years of tax returns showing rental income from all rental properties
- 6 months of PITI reserves on each of the financed properties
And, lastly, as a fraud-prevention measure, all applicants are required to sign a 4506-T – the mortgage underwriting document that permits lenders to verify submitted-with-the-loan tax returns against the borrower’s IRS-filed version of the same.
Unfortunately, not every bank participates in the Fannie Mae 5-10 Properties Financed program. Many Miami real estate investors are finding this out the hard way. Maybe you’re one of them.
So, if you’re in want of financing on the 5th home, the 10th home, or any of the homes in between, let your first call be to your everyday loan officer or bank; somebody who knows you well. Ask them for help. And then, if that call comes up empty, consider calling or .
My investors allow up to 10 properties financed. I’d be happy to get you started.
Dan Green is an active loan officer for Florida homeowners. Reach Dan via email at or call toll-free to 877-DAN-GREEN.
and the rich get richer..