New Fannie Mae Investor Reserve Guidelines
April 22, 2009, Writen by: Michael C. Zari
Follow Us On |
Linkin Profile
 |
I have been asked recently for some clarifications on the recent changes from Fannie Mae on Reserve Requirements when purchasing Investment Properties. As you may know, Fannie Mae has repeatedly changed its guidelines on this topic. Staying on top of this information is key as a real estate investor.
Per Fannie Mae’s February 6th Announcement:
When the borrower will own one to four financed properties (including the subject property) the reserve requirements are:
* two months of reserves on the subject property if it is a second home,
* six months of reserves on the subject property if it is an investment property, and
* two months of reserves on each other financed second home or investment property.
When the borrower will own five to ten financed properties (including the subject property) the reserve requirements are:
* two months of reserves on the subject property if it is a second home,
* six months of reserves on the subject property if it is an investment property, and
* six months of reserves on each other financed second home or investment property.
Note: The reserves calculation for a financed property is based on the monthly housing expense of the financed property. All reserve requirements are based on the new definition of reserves as defined in more detail in Fannie Mae Announcement 09-02.
So just as a numerical example, let’s say you want to finance an investment property costing $100,000 that will result in payments of $1,000 per month. Then your cash requirements will be:
1. 20% Down (typically): $20,000
2. 6 Months Reserve: $ 6,000
3. Closing costs: $ 2,500 (estimated).
In this example, then lender would be looking for $28,500 in your accounts to get approval.
You can click here for your copy of the announcement, or you can get it from:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf
Hopefully this helps clear things up for those of you confused on the new Fannie Mae Reserve guidelines for investors.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=0d640a8a-24fd-4c81-ae04-0cc629a1da55)
Related Real Estate Investing Posts
- Fannie Mae Increases Lending Caps To help support the needed financial recovery, Fannie Mae has announced that they are changing their recent investor cap...
- New Appraisal Rules and Regulations If you have not already heard, as of Friday May 1st 2009, as one industry expert put it, “the...
- Fannie Mae Actually Helping With Short Sales? You are kidding me right? A quasi-government institution actually doing something that makes sense and helping homeowners. Realcomp II...
- Home Valuation Code Of Conduct: Investors Be Ready Today marks a major change in the lending landscape and the way loans are sold to Fannie Mae &...
- Home Equity Lines - An Investor Goldmine In today’s very difficult financing environment for investors, a home equity line of credit option may be your best...
Related posts brought to you by Yet Another Related Posts Plugin.
Thank you for visiting www.NoBullRe.com. As always, your comments are welcomed below:
Comments
4 Responses to “New Fannie Mae Investor Reserve Guidelines”
Got something to say?
-
Who Is "REALLY" Making $ In Today's Real Estate Market?
Our 29,689 Members Tend To Agree...
It's Usually Not The GURUs
Have you ever noticed that every "Guru" real estate pitch sounds the same........
They once were poor, but now are rich working only 5 hours per week, and you can be rich too if you just buy their "can't fail system".
Or have you noticed that every property promote has a can't miss proposition, if you just buy TONIGHT.
At the NoBullRE club, we are huge believers in real estate investing...... but we also know that every approach has two sides: Nothing is perfect.
If you want unbiased ("No Bull") facts of who is making money, how are they doing it, and where do they get their knowledge, then you don't want to miss joining the NoBullRE Club
IT'S FREE (FOR NOW)
SECURE & CONFIDENTIAL
Your info will never be shared
CONFIDENTIALITY GUARANTEED
I missed the webinar on 4/21/09, is it archived somewhere so I can view now or in the near future?
Great post. I will definitely give my buyers an update so that they will fall inline with the guidelines in order to get a loan.
thank you for that clarification, it is very important to know how much capital you need to show in order to get the kind of leverage this opportunity presents. Good post.
Being a realtor, this information has been helpful so that I can relay the information to my clients.