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During this year, there have been 22 Fannie Mae updates. Fannie Mae has been a semi-independent company. However, its last act as such occurred several weeks ago.

The new guidelines first set a limit on the number of properties that can be owned by one person. Formerly, one person could own 10 properties. Now, mortgage requests for a loan for second homes or investment properties will be denied if the mortgagee already
finances more than a total of 4 properties.

However, if the mortgage applicant 's homes have loans in a corporation's name, and the real estate investor happens to be the only owner of this corporation, these properties will not be counted as part of the 4 property limit by Fannie Mae.

Therefore, it might prove beneficial for investors to restructure their properties into a corporation and avoid the 4 property limit. Now, this is a good idea to help gain mortgage approval even though some investors have taken this action for tax and liability reasons.

The second part of the guideline change cannot be so easily avoided. Fannie Mae is assessing new, loan-to-value based loan fees on all investment property mortgages.

*3.75% loan fee - Loan-to-value 80.01-90.00%
*3.00% loan fee - Loan-to-value 75.01-80.00%
*1.75% loan fee - Loan -to-value less than 75%

These fees are mandatory and are in addition to any whatever other risk-based loan fees Fannie Mae may assess. Currently, those fees amount to a half-percent at minimum for real estate investors.

Our government hasn't, since the Fannie Mae/Freddie Mac takeover, indicated whether or not mortgage guidelines will be altered. This would be positive for investors because,
as we know, low mortgage rates won't help much if those who want to invest in real estate can 't qualify for a loan .

In summary, if you are considering one or several investment properties, it may be more advantageous, and less expensive, to buy over the near term . Definitely consider placing the properties you do own into a corporation.