Fannie Mae 4 Property Rule…We Have a Solution!

Posted By: Sean Terry | December 18, 2008

Do You Have More Than 4 Properties on Your Credit?

Update: February 7, 2009 – Fannie Mae Policy Change Starting March 1, 2009     Read More

If so you do not qualify for traditional conventional financing through Fannie Mae and Freddie Mac.  The “Guideline Change” took effect December 1, 2008. I know, this is absolutely ridiculous!!! I have spoke with seasoned investors that have 800+ credit scores and good income BUT they have 4 or more properties on their credit report and can’t qualify for a conventional loan.  Stupid!!!!

I could rant and rave about this change for hours, but I like to focus on solutions. We have searched high and low to find a portfolio lender that will do loans for our clients that have the “4 property rule” issue. Well, we have finally found a lender that will do loans just for Fortress clients.

Just for clarification purposes so their is no confusion:

 **This Is Only For Investors That Have 4 or More Properties on His or Her Credit**

This program offered is “out of the box” and only for seasoned investors that want to “get in the game” but can’t because of this new rule. The idea is for an investor to purchase a property from Fortress Investments and hold it until the market recoupes and then sell the property down the road for a substantial profit.  So here is the limited time offer from North American Savings Bank.

Loan Terms

Loan to Value: 80% of purchase price

Down Payment: 20%

Term: 30 Years

Interest: 7% Interest Only

Investor Qualifications

700+ Credit Score or better

20% Down Payment

Good Debt to Income Ratio

Example

Property Appraised Value: $200,000

Purchase Price From Fortress: $157,500

Loan To Value: 80% –  $126,000 (New Loan From North American Savings)

Down Payment: 15% – $31,500

Monthly Payment: $885 (includes Taxes and Insurance)

Rate: 7% Interest Only

Term: 30 Years

Projected Monthly Rental Amount: $1,100

Cash Flow: $215

What’s the Result?  You now own a fully renovated property with a tenant in place with 25% equity for only $31,500 down. This is still better than the traditional purchase which requires a 25% down payment plus the renovation cost.

If you would like to learn more about this program please give Sean Terry a call at 888–643–0194 ext 3.  To learn more about the Fortress Investor Program please visit us at: Fortress Investor.

Happy Investing

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