Fannie Mae, the mortgage-finance company under U.S. government control, will no longer bar real-estate investors from qualifying for its loans if they already own four properties as it seeks to spur housing demand.
The company will expand its limit for investor and second- home loans to as many as 10 properties per borrower, according to a Feb. 6 notice to lenders on Washington-based Fannie’s Web site.
“Bona-fide, experienced investors bringing significant equity to the table will play a key role in the housing recovery,” Brian Faith, a Fannie Mae spokesman, said today in an e-mailed statement.
You still have to qualify, of course. You need good income, good credit, good ratios — and a goodly amount of risk tolerance. But if you have the means to buy two rental homes for cash, you could well have enough in down-payment money to buy eight or ten with leverage.
The implication? Finding cash-flow-positive rentals is easy in the Phoenix area right now. When our markets turn, your appreciation could really add up fast.
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