Change Fannie Mae Rules Campaign

The new 4 property limit from Fannie Mae is stifling real estate investing and cutting off the main sources of funding to most real estate investors. Yes there is other alternatives, but most are difficult to obtain and some are short term loans that don’t help the buy and hold investors. If anyone has any good ideas let me know. I will be talking to local banks but I am thinking the terms will not be very good or the note may be a short term balloon type loan. We’ll see.

I had another idea, why don’t we mobilize a campaign through a website or something to start contacting our congressmen and the Fannie Mae contacts that could change the guidelines so this would not be an issue anymore?

Anyone think this would be a good strategy?

The rule was invoked to help protect the tax payer from bailing out investors with no emotional ties to property and defaulting on mortgages. many of the current mortgage problems are from flippers and investors getting into properties with little or no money down and multiple properties and then walking away when properties values dropped.

Your point is valid if you assume you can still buy a house with no money down with poor credit and little cash reserves in a declining market.

The guidelines have been changed already to protect from that happening anymore. You can’t buy a house with no money down anymore more like 25% down or equity. Therefore there was no need to block out investors who have good credit, cash reserves, positive rental income, live in a good market, etc.

The way they worded it makes it seem like they only want to deal with investors who run it as a business and are able to put properties in a business name. I would assume then they would be savy investors as they say. Then you can come back and buy more properties from Fannie mae.

I am looking at some blanket loans, also some local banks. Not as easy as the old days but I bet it will weed out much of the competition.

Yes FNMA is probably not going to change these guidelines anytime soon.

I am all in favor of changing the rules.

If Fannie Mae wants to protect themselves, they can just limit the LTV for investment properties over a certain limit (10).