More Money For Real Estate Investing

<h1>More Money For Real Estate Investing</h1>Author: <a title="Rick Smith" href="http://www.articlesbase.com/authors/rick-smith/101011.htm">Rick Smith</a> Real estate investing received a big endorsement with Fannie Mae loosening their guidelines for investors. As of March 1st 2009, up to 10 financed properties are allowed per borrower. The new policy applies to individual or joint ownership of one to four unit homes. Real estate investors can play a big role in the recovery of the housing market. The new opportunity to buy investment homes with conventional financing should help expedite the sale of foreclosure inventory that has been curtailed by the need for investors to pay cash. This new money source removes a barrier to real estate investing, however, it does come with some conservative guidelines. Fannie Mae is primarily looking for experienced real estate investors with high quality credit and cash reserves. Qualifying requirements for real estate investors: 1. Purchase of a one unit investment property requires a 25% minimum down payment. 2. Buying a two to four unit property requires a minimum down payment of 30%. 3. A real estate investor must have a minimum credit score of 720 in order to qualify. 4. The investor cannot have any mortgage delinquencies within the last 12 months. 5. There cannot be any history of bankruptcy or foreclosure within the last seven years. 6. Rental income documentation with two years of tax returns showing all rental property. 7. 6 months reserves of principle, interest, taxes, insurance is needed for each property. Investors must sign a form granting the lender permission to request copies of federal tax returns directly from the IRS. Prior to the home loan closing, the lender must obtain the IRS copies of the tax returns or the transcript and validate the accuracy. The change in policy creates a positive move for the industry, although, strict guidelines will narrow the field of qualified real estate investors, and leave many on the sideline. However, this situation may lead to a growing opportunity of investment partnerships, groups, and clubs, which are designed to pool financial and credit resources to leverage the buying power of individuals.  About the Author: Written by Rick Smith: Current <a href="http://www.crhome.com">home loan rates</a> and information on <a href="http://www.ditech.com">home loans</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/more-money-for-real-estate-investing-782759.html" title="More Money For Real Estate Investing">More Money For Real Estate Investing</a>

Real estate investing received a big endorsement with Fannie Mae loosening their guidelines for investors. As of March 1st 2009, up to 10 financed properties are allowed per borrower. The new policy applies to individual or joint ownership of one to four unit homes.

Real estate investors can play a big role in the recovery of the housing market. The new opportunity to buy investment homes with conventional financing should help expedite the sale of foreclosure inventory that has been curtailed by the need for investors to pay cash.

This new money source removes a barrier to real estate investing, however, it does come with some conservative guidelines. Fannie Mae is primarily looking for experienced real estate investors with high quality credit and cash reserves.

Qualifying requirements for real estate investors:

1. Purchase of a one unit investment property requires a 25% minimum down payment.

2. Buying a two to four unit property requires a minimum down payment of 30%.

3. A real estate investor must have a minimum credit score of 720 in order to qualify.

4. The investor cannot have any mortgage delinquencies within the last 12 months.

5. There cannot be any history of bankruptcy or foreclosure within the last seven years.

6. Rental income documentation with two years of tax returns showing all rental property.

7. 6 months reserves of principle, interest, taxes, insurance is needed for each property.

Investors must sign a form granting the lender permission to request copies of federal tax returns directly from the IRS. Prior to the home loan closing, the lender must obtain the IRS copies of the tax returns or the transcript and validate the accuracy.

The change in policy creates a positive move for the industry, although, strict guidelines will narrow the field of qualified real estate investors, and leave many on the sideline. However, this situation may lead to a growing opportunity of investment partnerships, groups, and clubs, which are designed to pool financial and credit resources to leverage the buying power of individuals.

Written by Rick Smith: Current home loan rates and information on home loans

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Article Tags: Real Estate, Money, Financing, Real Estate Investing, Real Estate Investors

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