Fannie Mae 4 Property Rule…We Have a Solution!

18 Dec

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

HouseIf 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



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


Tags: Fannie+Mae+4+Property+Rule, Fannie+Mae+4+Properties
Please Spread The Word:
  • Digg
  • StumbleUpon
  • Reddit
  • Yahoo! Buzz
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • Technorati
  • Twitter
If you enjoyed this post, make sure you subscribe to my RSS feed!

Related posts:

  1. Fannie Mae Lifts 4 Property Rule Limit! Posted By: Sean Terry | February 7, 2009 Investors Can...
  2. Fannie Mae to Suspend Foreclosures in This Drastic Measure! Posted By Sean Terry| January 30, 2009 Fannie Mae and...

3 Responses to “Fannie Mae 4 Property Rule…We Have a Solution!”

  1. reviews 18. Dec, 2008 at 2:09 pm #

    Nice work chief ;-)

  2. Kitchen Canisters · 08. Nov, 2010 at 3:48 am #

    it is quite easy to get a good credit score specially if you know how to micromanage your finances ‘

  3. cover letter 28. Jul, 2011 at 6:59 pm #

    Fannie Mae 4 Property Rule…We Have a Soultion! | Dealmakers Blog – Ramblings of a Real Estate Mogul Great goods from you, man. I have understand your stuff previous to and you are just extremely excellent. I really like what you have acquired here, certainly like what you are saying and the way in which you say it. You make it entertaining and you still care for to keep it wise. I can’t wait to read much more Fannie Mae 4 Property Rule…We Have a Soultion! | Dealmakers Blog – Ramblings of a Real Estate Mogul again from you. Thanks For Share .