Finally some intelligent movement when it comes to investment policy. Read the Fannie Mae official announcement .

This excerpt comes from the lead paragraph: “Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery.”

To that end, Fannie Mae will now finance the purchases of one-unit homes for investors with an interest in between 5-10 properties, provided that all of the following guidelines are met:

• 25 percent down payment on the investment property;
• Minimum credit score of 720;
• No mortgage payments late within the last 12 months;
• No bankruptcies or foreclosures in the last seven years;
• Two years of tax returns showing rental income from all rental properties;
• Six months of principal, interest, taxes and insurance reserves on each of the financed properties.

And lastly, to reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T.

Tags: Fannie Mae Investor Guidelines

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