Real Estate Investors Up In Arms Over Four Loan Limit Policy?
Wednesday, December 10, 2008
Some real estate investors are up in arms over a new Fannie Mae-Freddie Mac policy that limits to four the number of real estate loans that can be held by a single person.
The rule, which took effect Dec. 1, prohibits an investor from obtaining even a fifth mortgage no matter how much money he puts down or how much income documentation he provides. It offers no exceptions for assets or history of success as a real estate investor.
Some investors are trying to work around the rule by partnering with other investors to either buy in cash or use their eligibility to borrow.