Real Estate Investor Update - Northwest Suburbs

By
Real Estate Agent with RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago
http://actvra.in/KQy

Investor News - Fannie Mae's New Guidelines

Fannie Mae
has made some major changes in its polices that now allow real estate investors tofannie mae foreclosures, purchase up to 20 properties, using renovation loans similar to 203k mortgages.

The new changes that took effect on October 1st, 2012 are big news for smaller investors, and are designed to help Fannie Mae clear out its inventory of foreclosed properties. Previous guidelines limited investors to 10 mortgages on non-owner occupied residences. And, while the new policy allows the purchase of up to 20 properties by one investor, half of the purchases now are required to be Fannie Mae foreclosures.

Here’s the details:

• Minimum downpayment (on each home) is 30%
• No mortgage insurance needed
• Appraisal not required
• Contributions from sellers and other interested parties are limited to 2%
• Purchase loans only, no refinances
• No second homes
• Properties 11 through 20 have to be Fannie Mae foreclosures
• 203k type renovation loans available through Fannie Mae finance partner

Investors have to purchase properties through the HomePath program and finance those homes through Fannie Mae’s finance partner, Prospect Mortgage.

Over the past months, investors have stepped into markets all over the country, whether to concentrate on 'flipping' properties, or renovating and then renting.  If you are looking to purchase an investment property in the Northwest Suburbs of Chicago, please feel free to give me call.  

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Lyn Sims    Schaumburg IL Area    Northwest Chicago Suburbs  ●  (847)230-7324

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Show All Comments
Ambassador
1,030,862
Debbie Reynolds
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730 - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Lynn, This is a good change but it still doesn't help a whole lot becasue teh downpayment requirement is pretty steep.

November 01, 2012 09:35 AM #1
Rainmaker
811,683
Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

Debbie:  I agree that 30% x 20 is some steep change depending on the average sales prices in an area.  Interesting thought that at least they are opening up some options for investors because that whole segment of the market had really been shut down tight.

November 01, 2012 11:40 AM #2
Rainmaker
682,719
Gene Mundt
www.genemundt.com - Joliet, IL
Mortgage Lender - Chicago/Chicagoland Mortgages

Lyn:  I'm all for making changes to accommodate and facilitate business.  This will perhaps touch upon and assist fewer than we would like ... but better than doing nothing.  It's an OPTION ...

Gene

November 01, 2012 02:15 PM #3
Ambassador
729,751
Debb Janes
The Carl Group, LLC - Camas, WA
REALTOR®, EcoBroker Camas, Washington

I agree with you Lyn, at least there's some progress in this area and it's better than nothing. Have a great weekend.

By the way, like the little mortgage app in the sidebar.

November 02, 2012 01:08 PM #4
Rainmaker
518,022
Susan Haughton
Alexandria, VA
Helping You Buy or Sell Alexandria Real Estate

Thanks for the helpful information;  a little progress is better than none. 

November 05, 2012 05:49 AM #5
Rainmaker
605,197
Teri Eckholm
REMAX Specialists - White Bear Lake, MN
Acreage & Lakeshore REALTOR Minneapolis St Paul

Lyn--Good information to share..thanks for keeping us updated!

November 06, 2012 02:08 PM #6
Ambassador
838,806
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Lyn, I had not read about this and it's really good to know since I have an investor right now looking at properties.

November 11, 2012 08:09 AM #7
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Rainmaker
811,683

Lyn Sims

Schaumburg Homes
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