Fannie Mae is one of the biggest sellers of REOs (bank owned homes) in the country.

In order to reduce their inventory of 283 homes for sale in Franklin County OH alone, they offer new incentives, which make Columbus loans on Fannie Mae home purchases even better than FHA loans.

You can find details on the new Fannie Mae incentives in this article:

Fannie Mae Announces New Buyer and Seller Incentives for REOs

Here are 5 advantages of buying a Fannie Mae home:

1. Columbus loans on Fannie Mae homes require a low down payment (as little as 3%)
2. Fannie Mae does not charge mortgage insurance on these Columbus loans
3. Fannie Mae homes are generally in good condition
4. Owner occupants have a 15 day exclusive period to bid, before investors are allowed to make offers.
5. They also offer the option of  rehab loans

Some of these incentives are only good till the end of this year. This means that you would have to close before December 31, 2010.

We all know how long it takes to get Columbus loans approved these days. So you need to be in contract no later than November 15, 2010, to make sure that you can meet this deadline.

If you need help finding excellent Columbus OH homes for sale you can simply call Susanne Novak at 614-975-9650. She is an excellent Columbus real estate agent who has many years experience selling bank owned and HUD properties.

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Fannie Mae will now finance the purchases of one-unit homes for investors with an interest in between 5-10 properties, provided that all of the following guidelines are met:

• 25 percent down payment on the investment property;
• Minimum credit score of 720;
• No mortgage payments late within the last 12 months;
• No bankruptcies or foreclosures in the last seven years;
• Two years of tax returns showing rental income from all rental properties;
• Six months of principal, interest, taxes and insurance reserves on each of the financed properties.

And lastly, to reduce fraud, Fannie Mae will now require all real estate investors to sign a form granting lenders permission to verify supplied tax returns against the official, IRS-filed version. This document is less commonly known as a 4506-T.

What does this mean?

Compared to loans available to owner occupant buyers, these requirement are very, very tough. The credit score and the 12 months no late payment requirement make a lot of sense. Seven years without a bankruptcy may be difficult for some guys. But everybody should be able to produce 2 years of tax returns.

However, having reserves for all your rental properties for six months is definitely a deal killer. You are talking tens, if not hundreds of thousands of dollars. I don’t know any small investor who would have that much money sitting around. You’d certainly rather use it to rehab a house or invest in your business.

Bottom Line

These Fannie Mae loans do not make sense for small investors. I recommend you go to a local bank where you will get more reasonable terms.

Thanks for reading our Columbus Loans & Mortgage Blog
Go to here to find great Columbus Houses

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