The END of Real Estate Investing? | Fannie Mae TIGHTENS Mortgage requirements…

Fannie Mae and Freddie Mac have recently stated that they are tightening lending requirements specifically on secondary or investment properties. That means that Real Estate Investing just got a lot harder, as it is harder to get approved for a loan for an investment property. On top of that, mortgage interest rates are rising, and the new administration has proposed a first-time homebuyer program, making it even harder to break into the real estate investing market. If you want to be like Grant Cardone, spend time focusing on your financial education and learn everything there is to know about mortgages, mortgage rates, and everything to do with getting the financing for an investment property figured out. Then you can become even better at real estate investing then Meet Kevin and Ryan Pineda!

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Whats going on guys, as you saw in the title and thumbnail, we are going to go over the new rules that fannie mae and freddie mac are setting on investment properties moving forward. This is going to change the way we go about investing into real estate as it pertains to financing a property. lets get started.

Fannie Mae sent out a lender letter on March 10, stating that in April their lending requirements were going to change. The main change and variable that affects us the most is that they are now only going to allow only 7% of the total mortgage loans they purchase to be loans that are for secondary or investment properties.

Typically, Fannie Mae and Freddie Mac buy mortgages in bulk that are packaged together from lending companies in America, then resell those loans to a borrower.

Their reasoning for this is to minimize risk, as they see secondary mortgages as naturally riskier than primary mortgages. It makes sense, if someone had to choose between paying a secondary mortgage loan at the end of the month compared to some other expense such as their primary mortgage, they would opt to pay the primary mortgage and not the investment properties mortgage.

But now instead of buying lets say 20% of the total loans they purchase to be for secondary mortgages, they are only buying 7%, which means there are less mortgage loans going around for investment properties.

Obviously, the competition for these loans will grow as they become more scarce. A mortgage as a first-time home buyer thus will become easier to receive, but the high home prices and low supply still make it hard to get a house due to all the demand/competition. If the first time homebuyer program gets passed, it will be even easier for first-time homebuyers to get a house, as there down payment will be miniscule. Again, making it harder for real estate investors as supply will only fall even lower. Even if you find a property, now getting a mortgage will be just as hard.

While it won't be impossible, getting the mortgage financed with a mortgage loan just got a LOT more competitive as these mortgage loans are more scarce due to this restriction. That also means to even be considered for one of their limited secondary mortgage loans, you'll need and even better resume like a higher credit score, more money down, and overall more creative ways to finance a property.

But I'm curious with what you have to say, comment down below if you'd like to provide your perspective, I'd love to hear it. Also, like this video and subscribe to my channel if you haven't already, and as always I'll see you in the next one!

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Видео The END of Real Estate Investing? | Fannie Mae TIGHTENS Mortgage requirements… канала Austin Zaback