New Mortgage Regulation for Investors!!!

Beginning August 1st 2008, Freddie Mac implemented a regulation regarding investors and their mortgages. Investors are now only allowed to finance mortgages on 4 investment properties (primary residence mortgages are not counted).

Current investors with more than 4 mortgaged properties will be grandfathered in, however, the loans associated with these mortgages are NOT allowed to be refinanced.

Remember, this regulation takes effect only for each person. For example, a married couple can finance 8 investment properties if they choose to hold 4 in one name and 4 in the other. This may be something to consider for investors who own many mortgaged properties.

Lenders may start making internal changes to comply with this regulation BEFORE the August 1st implementation date, so watch for it.  Also, we expect Fannie Mae to follow suit soon after Freddie Mac.

For more in depth information, contact Gillian Meadows at 513-317-6986. She is a very knowledgeable Mortgage Loan Officer with Humphries Mortgage in Mason, OH.

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