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2nd mortgage question for Dave

Posted by jojoco (My Page) on
Tue, Feb 10, 09 at 16:57

Hi Dave,
I am a realtor and I received the following in an email from a mortgage broker:
"... Rules and regulations are changing on a
daily basis in the Mortgage industry...

Definite Changes- As of March 9th 2009, 20% down is required for all second home
purchases.

Anticipated Changes- Fannie Mae may be raising the number of loans an investor
will be allowed to hold to 9."

I have a client who is looking for a second home in my town and I would like to share this information with him, but not as it is. I called her to ask for an article to cite, and she failed to call me back.
I live in NY.
Any legs to this "definite"?
Thanks,
Jo


Follow-Up Postings:

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RE: 2nd mortgage question for Dave

This is the last I've seen. Dave probably has his finger more on the pulse being in the biz.

Here is a link that might be useful: FannieMae Announcement 09-02


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RE: 2nd mortgage question for Dave

Hi Jo,
Bernie's got the same memo I received.

I do believe 80% LTV (20% down) is still required on 2nd homes #2-4 (technically... if u/w knows #2 is financed as a 2nd home, #3 & #4 would only be approved as an investor loan anyway.)

Loans on properties #5-10 are as itemized on the announcement.

Cheers,
Dave Donhoff
Leverage Planner


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RE: 2nd mortgage question for Dave

Jo,

As you know, DH sits on a Freddie Advisory Board. He says that Freddie is still buying Purchase Money mortgages for second homes at 85%. What's tough is getting the necessary PMI...not impossible, just hard.

/tricia


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RE: 2nd mortgage question for Dave

Lots of us just changed to 80% for second homes because the Mortgage Insurance companies changed their guidelines. If I remember correctly, out of 4 insurance companies, there is only 1 left that will insure a second home. And all the mortgage insurance companies are making major changes right now.

Fannie Mae is changing to allow people to own more than 4 properties, which was the maximum. But there are many more restrictions.


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