Fannie Mae Lifts 4 Property Rule Limit!

7 Feb

Posted By: Sean Terry | February 7, 2009

Investors Can Now Finance Up to 10 Investment Properties Starting March 1, 2009!

Fannie Mae Lifts 4 Property Rule

Lending giant Fannie Mae announced on Friday, February 6th 2009 they’re lifting the 4 property rule limit as of March 1, 2009.  The Fannie Mae Policy Change will allow qualified investors to finance more than 4 properties.  This is a huge policy change that will make a massive positive changes in the real estate market across the country.  Under the previous guideline investors could only finance 4 properties, which meant a seasoned investor with 5 properties, great credit and documented income could not finance an investment property.  Well today that has changed.  Here are the requirements for investors under this new guideline:

Fanie Mae New Guidline Change

Although the LTV is only 70% this is still a huge stride in the right direction allowing investors to capitalize on this market.

If you would like to learn how to Buy Cash Flow Properties For Only $7,500 Out of Pocket, Click Here.

Tags: Fannie+Mae+4+property+rule+lifted
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14 Responses to “Fannie Mae Lifts 4 Property Rule Limit!”

  1. Ross Treakle 10. Feb, 2009 at 3:57 pm #

    This is good news for many investors out there that want to buy using their own names. However, you should never be capped on the number of properties you can buy because it is very easy to set up an LLC to hold more.

    In the article from Fannie Mae it states how the problem with many investor loans is that they lack equity…folks, you make your money when you buy so you should NEVER buy with no equity.

    As an investor, and especially in today’s market, you should be buying properties with deep discounts and be buying with instant equity margins!

    None the less…good news for the investor wanting to hold properties ion their own names!


    Ross Treakle

  2. Sean Terry 10. Feb, 2009 at 12:32 pm #

    Thanks for the comment Ross, I like your website, I think it’s very informative. I wish it was that easy for investors to set up an LLC and purchase more properties but under the current Fannie and Freddie guidelines an individual can have up to 10 properties on their schedule of real estate/credit profile. If one sets up an LLC and wants to transfer the property to that LLC it will protect them from liability but not release it from the personal guarantee. That being said, if the investor would like to go the commercial financing route than the property can be held in an LLC and they can finance as many as that bank will let them, although commercial financing is a complete different animal. As for buying properties at a deep discount I agree 100% my company Fortress Investments does just that, we sell cash flow properties to investors will 25% built in equity.

  3. Lorri O'Brien 24. Feb, 2009 at 6:50 am #

    Hi there, What is the company mentioned above that buys loans for cashflow properties? Thank you. Lorri O’Brien

  4. Sean Terry 24. Feb, 2009 at 5:08 pm #

    Lorri, I think you are referring to Fannie Mae, they along with Freddie Mac are the largest buyers of home loans in the US. The companies are federally backed and own 80% of the mortgages in the United States. For more info please visit: Fannie Mae Home Page

  5. JM 04. Mar, 2009 at 3:19 pm #

    I want to “pick” everyone’s brains. My wife and I are trying to buy a house for $300-400K. I have 5 properties on my credit and she has none. Not even the home we live in. From what I hear, I cannot buy this next home b/c of my 5 properties. I am now counting on my wife to buy the house outright and leave me out of it. Has the rule changed from 4 to 10? Can I now buy the house which would be my primary?

  6. Sean Terry 04. Mar, 2009 at 3:30 pm #

    Hello JM, thanks for you comment and question, you are asking if you can buy a primary resident even though you have more than 5 properties on your credit and the answer is yes. Fannie Mae recently changed the regulation as of March 1, 2009 that an individual can purchase properties 5-10 if they meet a certian criteria, 720 credit score, documented income and 6 month cash reserves. If you can’t meet these qualifications than your wife with no properties on her credit can buy the home if she has a 680 credit score and documented income. For more information on this subject please check out our blog post on “Fannie Mae Lifts the 4 Property Rule” If you have any further questions please reply.

  7. Jason Williams 04. Mar, 2009 at 7:03 pm #

    That’s good that the rules have changed a bit; however, has Fannie Mae and Freddie Mac change the rule about “seasoning”. I bought a house at foreclosure auction 2 months ago and made all necessary repairs (minor repairs < $10K) and even though the LTV is 62% all the banks that I spoke with said that they cannot refinance my investment property until I have owned it for at least 12 months. However, they said I could sell it right now and the “seasoning” does not apply. What???!!! So first, can someone tell me if this is true? Secondly, is there any bank or financing company which will close on a loan within 14 days so I can purchase a property at the auction through a loan instead of cash?

  8. Sean Terry 04. Mar, 2009 at 7:23 pm #

    Hello Jason, Thanks for the comment. Don’t you hate the stupid rules, the people that make them have no clue on how to correct this problem. They need to roll out a program that will cater to investors like us that can buy properties and clean up this mess. Now, your question regarding seasoning, you can do a “rate and term” refinance at 75% of the LTV as long as there is NO cash out. In your case the LTV is 62% so they would do a 62% no season rate and term refi. There is a significant difference between a “rate and term refi” vs “cash out refi” The lenders have no prolbem if you don’t want to take out cash. If you want to pull out cash than you have to wait 6-12 months before the property would be considered “seasoned” To answer your 2nd question, you are referring to Hard Money Lenders”. 1st what State do you live in? 2nd here is a list of hard money lenders you can contact that might help you out. We use hard money on all of our purchases but here in Phoenix AZ we have to close on our successful bids in 24 hours.
    I have another idea, email me directly at and I fill you in.
    Thanks again,

  9. Lance Watson 17. Mar, 2009 at 10:56 pm #

    I REALLY liked your post and blog! It took me a little bit to find your site…but I book marked it. Would you mind if I but a link back to my site?

  10. Nell 12. May, 2009 at 11:30 pm #

    I have five properties: my residence and four investment (rental) properties. All of them have mortgages. As it stands now, it appears that I cannot do any cash-back refinances that involve Fannie Mae.

    Question: If I pay off one of the properties, and own that property free and clear, I will have five properties, but only four financed properties. So at that point can I do a cash-back Fannie Mae refinance on one of the four financed properties?

  11. National Landlord Assoc 26. Jun, 2009 at 8:42 am #

    Yes, this is the time and place! We work with buyers, investors, women, who want to go big in real estate, own it, and we manage it all for them. The girls will love it. We gotta go now! Let’s do it.

  12. joseph 06. Dec, 2009 at 6:36 pm #

    Wish I had come here before. Thanks anyway. Nice Blog.

  13. TZlFDfKA 14. Mar, 2011 at 3:24 am # Thanks for that awesome posting. It saved MUCH time :-)


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