Fannie/Freddie Investment Property Limits Back To 10

I just received this message from a mortgage lender I work with. (She’s pretty darned good, by the way.)  Note that qualifying is pretty restrictive and there will be a full colonoscopy regarding documentation.   But it is definitely a step in the right direction!

***  ***  ****

Provided we have the correct LTV and DTI and an approval through our automated system, your clients are ready to go BUY MORE INVESTMENT PROPERTY!  Just got the message today!!!  We’re back up to 10 as per Fannie / Freddie guidelines.  Spread the word!

I’m off to Maui tomorrow, so holler at me next week with questions!

LTV Restrictions:

Transaction Type Units Maximum
Minimum FICO Score
Second Home
Purchase 1-Unit 75/75/75 720
Rate/Term Refinance 1-Unit 70/70/70 720
Investment Property
Purchase 1-Unit 75/75/75 720
Rate/Term Refinance 1-Unit 70/70/70 720
Purchase or Rate/Term Refinance 2-4 Unit 70/70/70 720

*When the LTV/CLTV/HCLTV differs from the Process/Program selected, the more restrictive applies.

Additional Underwriting Requirements:

No history of bankruptcy or foreclosure within the past 7 years
0x30 in the last 12 months on any mortgage
Rental income from other properties owned by the borrower must be supported by two years federal tax returns. Full documentation must be obtained and DU messages for reduced rental income documentation are not eligible.
4506-T must be executed and IRS copies of the returns or the transcript must be obtained and the underwriter must review the borrower provided tax returns against the information obtained from the execution of the 4506-T prior to full approval.

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Audra McMahon

Certified Mortgage Planning Specialist (CMPS)



FirsTrust Mortgage, Inc

4501 College Blvd, Suite 250A

Leawood, KS 66211

913-747-3279 phone

816-507-6941 cell

913-254-4011 fax

Celebrating 20 years in the mortgage industry!

Listen to the Truth in Lending Show every Sunday at 4pm on 980 KMBZ!


Filed under Financing Options

5 responses to “Fannie/Freddie Investment Property Limits Back To 10

  1. Another Investor

    That should help clear the inventory, but the limit still leaves those of us with a lot of properties out in the cold.

  2. It is certainly not the answer to all the real estate problems. But it puts many investors at the four limit, who are more than qualified, back in the game.

    That’s good for the inventory. It’s good for those investors. And, it’s good for me. 🙂

  3. Another Investor

    I have been saying for what seems like years that if you put the experienced investors back in the game through leverage, they will set the market clearing prices and unclog the pipeline.

    This is great news for real estate agents who work with investors and for loan originators. Maybe the markets will unfreeze in those areas where they have turned to ice.

  4. ChrisS

    Formatting for the table in Firefox 3 is off. Appears to work in IE and Opera.

  5. I use Firefox, too. I just did a simply copy and paste. Don’t feel like re-writing the whole thing. Lazy, you know? 🙂

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