Fannie Mae Removes Its 4-Financed Property Limit

Last Friday, Fannie Mae rolled-back one of its least popular mortgage guidelines updates of the last 12 months.

Effective March 1, 2009, real estate investors can once again own and finance up to 10 individual properties. The restriction reversal does come with new minimum requirements, however. Homeowners buying a 5th, 6th, 7th, 8th, 9th or 10th home must meet the following standards, as set forth by Fannie Mae:

• 720 credit score
• 25% downpayment for a 1-unit (30% for a 2-4 unit)
• No mortgage delinquencies in the last 12 months
• 6 months of reserves for each investment property

In other words, Fannie Mae is re-opening the lending spigot for real estate investors with good credit, a sizeable downpayment and ample reserves.

According to Fannie Mae, the change rationale is that experienced investors can "play a key role in the housing recovery". Until now, foreclosure auctions have gone at less than full speed because investors unable to pay cash have been halted by the existing 4-property Fannie Mae limit.

Going forward, expect a more expedient foreclosure liquidation nationwide which should, in turn, provide further support for the housing market.

And lastly, not to be forgotten, homeowners with more than 4 properties can finally participate in the ongoing conforming mortgage Refi Boom. Until now, they've been stymied by the 4-property restriction, too.

This decision gives confidence to the real estate investors out there whose goal is to build a portfolio of properties and a substantial passive income. Contact us at Sellphillyproperty.com and take a look at the real estate investment properties we have available with positive cash flow. Some can enter or add to their portfolio with limited or no cash of their own. Call or email us.

Temple University = Profitable Real Estate Investing

Considering investing in Philadelphia residential real estate? If you plan to purchase Philadelphia real estate and rent your property, you may want to invest in Philadelphia’s developing neighborhoods and one of the best, hot places is housing for Temple University students.


Consider these points about Temple housing:

• Temple can only house their freshmen class. This leaves a great demand for student housing in the city.
  
• Temple is located in the area of North Philadelphia that has gone through and is still in the process of revitalization. This creates great opportunities to purchase property as a great investment with monthly CASH FLOW.
  
• Temple students pay anywhere from $ 375 to $ 700 PER ROOM for rent, giving you positive cash flow every month.
  
• You must make sure your property is zoned properly.
  
• Students begin looking for housing from May to August.

We have available an investment property that falls into all of the criteria above. Now is the perfect time to take possession of an investment property near Temple University. The timing of rehab needed, will allow an astute investor to have this property ready for the fall housing period.

And not only do properties around the Temple area provide a nice cash flow and also appraise at a high After Repair Value (ARV) but the taxes are very low compared to other major cities. The annual real estate taxes on the above mentioned property is $ 119 per year - that's not a misprint. $ 119 PER YEAR!

With the recently announced 1.6 million dollar grant that Temple will receive to develop new technologies in pharmaceutical waste, the Temple area continues to play a major roll in Philadelphia's employment and education. Philadelphia residential real estate investors would be smart to consider this the area of Philadelphia real estate growth. Contact us at www.sellphillyproperty.com.

Philadelphia Bucking Trend in Real Estate Sales

Investing in Philadelphia residential real estate? Despite news reports about a downturned real estate market, it seems that Philadelphia is bucking the trend.

In a Philadelphia Business Journal article from January 7, 2009, ” the Philadelphia area bucked not only a national trend but a Northeast trend as well, as activity in the Northeast region fell 7.2 percent from October to November, and was down 14.6 percent in November compared to a year earlier.” The index used “increased 24 percent” from October to November.

When considering purchasing investment property - consider the Philadelphia area. It has one of the country’s lowest percentage of real estate taxes and with it’s business growth and the uniqueness of having four medical colleges within the city limits.

Philadelphia is one of those unique and best kept secrets for finding real estate investment properties. We specialize in finding and wholesaling investment properties that show a monthly positive cash flow and in many cases, extra cash back at refinance. To see our current list of available investment properties, go to our website.