Real Estate Investor Update - Northwest Suburbs

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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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Chicagoland and Northern Illinois Real Estate
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Ambassador
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, 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.

Nov 01, 2012 09:35 AM #1
Rainmaker
843,163
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.

Nov 01, 2012 11:40 AM #2
Rainmaker
729,006
Gene Mundt, Chicago-area Mortgage Lender - www.genemundt.com
NMLS #216987 - New Lenox, IL
708.921.6331 - 37 yrs experience

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

Nov 01, 2012 02:15 PM #3
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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.

Nov 02, 2012 01:08 PM #4
Rainmaker
617,460
Susan Haughton
Long & Foster REALTORS (703) 470-4545 - Alexandria, VA
Your Client-centric Alexandria VA REALTOR

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

Nov 05, 2012 05:49 AM #5
Rainmaker
608,773
Teri Eckholm
REMAX Results - White Bear Lake, MN
Acreage & Lakeshore REALTOR Minneapolis St Paul

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

Nov 06, 2012 02:08 PM #6
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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.

Nov 11, 2012 08:09 AM #7
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Rainmaker
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Lyn Sims

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