Effective Friday, February 20, 2009, there is a financing option for borrowers with 5-10 financed properties. Fannie Mae’s standard guidelines restrict the number of financed properties to four. Fannie Mae has recently announced they will allow loans to borrowers that have between 5-10 financed properties, when the new loan meets the criteria listed below. The new Fannie Mae Multiple Property Program is a fixed-and adjustable-rate and term, fully amortizing, conventional conforming first lien mortgage loan program specifically designed for borrowers that own between 5-10 financed properties.
Features of the Fannie Mae Multiple Property Program include:
- 30-Year Fixed.
- 5/1 LIBOR ARM available (5/2/5 caps).
- Second home and investment properties are eligible.
- Up to 75% LTV purchase transactions.
- Up to 70% LTV rate/term refinance transactions.
- Minimum credit score of 720.
- Borrowers must own between 5-10 financed properties. (This applies to the total number of properties financed, not just the number of mortgages sold to Fannie Mae.)
- No history of bankruptcy or foreclosure within past 7 years.
- No delinquencies (30-day or greater) within past 12 months on any mortgage loan.
