TIP OF THE DAY- FREDDIE MAC MAXIMUM FINANCED PROPERTIES

 

TIP OF THE DAY- FREDDIE MAC MAXIMUM FINANCED PROPERTIES

 

Effective August 20, 2018

For second home and Investment Property Mortgages, we currently limit the number of 1- to 4-unit financed properties that a Borrower individually is, and all Borrowers collectively are, obligated on to six (including the subject property and the Borrower’s Primary Residence).

In response to Seller requests, we are increasing the maximum number of financed properties permitted to 10 provided that, when the number of financed properties is greater than six:

•               • The Mortgage must:

•               ➢ Be a Loan Product Advisor Mortgage with a Risk Class of Accept

•               ➢ Have a minimum Indicator Score of 720

•               • The Seller must verify reserves of eight months of the monthly payment (as described in Section 5501.2(a)) on each additional second home and/or 1- to 4-unit Investment Property that is financed and on which the Borrower is obligated.

 

Loan Product Advisor will be updated by August 20, 2018 to reflect this change.

Guide impacts: Sections 4201.15, 4201.16 and 5501.2

justin brown