At the urging of NAR, Fannie Mae announced a new policy to allow investors and second home buyers to obtain up to 10 loans which in practice allows to purchase up to 10 financed properties. The new policy took effect on March 1, 2009, and replaced the 4-loan limit. The restriction applies to the total number of loans, not just to the loans sold to Fannie Mae.
The new regulation means that investors and second home borrowers can finance up to 10 purchased properties, if each property is financed with only one mortgage. For example, an investor can purchase five (5) properties if each property requires first and second mortgage, or nine (9) properties if only one (1) of the properties is financed with first and second mortgage and the other eight (8) with one mortgage. The number of loans cannot exceed 10 per investor, as per the current 10-loan limit.
SOURCE: Fannie Mae, National Association of REALTORS
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