Fannie Mae Requirements for Investor and Second Home Borrowers with Five to Ten Financed Properties

Most lenders will restrict the number of properties an investor can finance to a total of four properties.  This restriction was recently loosened to allow for up to ten financed properties.  There are unique restrictions regarding credit score, Loan to Value (or LTV) and reserve requirements that make getting them funded very difficult. Here are a couple of bullet point guidelines you’ll need to be aware of: No foreclosures in the preceding 7 years No late mortgage payments within the last 12 months 6 months of mortgage payments in need to be in reserves for each other second home or …

10 Home Renovations That Don’t Necessarily Add Value

Some people assume that all renovations done to the home will add value.   As a matter of fact most people spend thousands of dollars on expensive upgrades and renovations over a period of time. What these people forget is that the next owner may not like the renovations.  Everybody needs to remember that your home is only worth that of homes of comparable size are appraised at, not necessarily by the characteristics of your home.  Yes, some qualities are highly sought after like garages, finished basements, enclosed yards or large kitchens but you need that certain buyer to appreciate them. …

Home Values…You Got It, Your Home Is NOT Worth What You Thought.

I’m certainly not an appraiser or an expert on home values, but being in the biz as long as I have, I do have a fairly good understanding of appraised home values and the ever restrictive lending requirements behind it. For many who have had an appraisal done in the past year or so, may be able to attest to this blog’s title.  The appraisal was done and you were shocked that the value came in so low. “But I just spent $25,000 for this beautiful landscaping!” In this day and age, that is called over-improved.  You just spent a lot of money that did …

So Banks Think There’s No Such Thing as “Too Big to Fail” – The Audacity of Dopes

On Friday the 13th, the Chairman and CEO of J.P. Morgan Chase decided to weigh in on whether a bank could be too big to fail. I’m sure you’re on the edge of your seat wondering which side of this argument he’d be on. I know I’ve been breathlessly waiting for one of the titans of Wall Street to tell me what the best way to regulate their businesses would be. Thank heavens I finally know what to think! Before we evaluate the points, let’s consider the timing and the source. This op ed wasn’t benevolently shared with us in …