Investment Properties & Advice

This is a great article and I highly recommend reading it.  I learned something new too.  Here is the link for tax rules for 2^nd homes http://www.kiplinger.com/features/archives/2007/01/secondhome.html.   

Here is the link for when you make your vacation home a business http://www.kiplinger.com/magazine/archives/when-you-make-your-vacation-home-a-business.html 

The most important items that stuck out to me were the 14 day rule with personal use, making sure you factor in the lost investment earnings from your down payment, and the adjusted gross income exceeding $150,000.  This is why it is very important to consult your CPA and Financial Planner too. 

http://www.kiplinger.com/magazine/archives/vacation-homes-deal-or-no-deal.html 

Fannie Mae Changes For Multiple Investment Properties

This text is from a Director of Capital Markets and I have included the link for Fannie Mae with the exact details on the change.  “Fannie Mae has issued Announcement 09-02, “Updates to Multiple Mortgages to the Same Borrower Policy, Reserve Requirements, Reserves Definition, and Form 3170.” In what is good news for “professional borrowers” with multiple investment properties, Fannie Mae is changing their current limit of four financed properties per borrower when the mortgage being delivered to Fannie Mae is secured by an investment property or second home. They will allow “five to ten financed properties per borrower, with certain eligibility and underwriting requirements, including a 720 minimum credit score and 70-75% maximum LTV/CLTV/HCLTV (depending on the transaction and property type). The requirements apply to any investment property or second home loan being delivered to Fannie Mae, regardless of whether Fannie Mae is the investor on the borrower’s other mortgages. Second home and investment property loans to borrowers with five to ten financed properties will be accepted for whole loan purchase or delivery into MBS with purchase dates on or after March 1, 2009, and new Special Feature Code 150 will be required at delivery.” Brokers everywhere await Wells, Citi, Chase, etc. to follow.”

 

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf