Freddie Mac announced an increase to the maximum number of financed properties they will allow on second home and investment property transactions in Freddie Mac Bulletin 2018-10.
Effective with loans submitted to Loan Product Advisor on or after August 20, 2018 borrowers will be eligible to have up to 10 financed properties, including the subject (currently Freddie only allows 6).
The following will be required when the number of financed properties, including the subject, is 7-10 and the transaction is a second home or investment:
- A minimum credit score of 720, and
- Eight (8) months of PITIA payments for each additional financed property
NOTE: One to six financed properties will continue to require two (2) months PITIA in reserves for each additional property.
The Loan Product Advisor Feedback Certificate will provide the amount of reserves required.
The HomeBridge Freddie Mac guidelines have been updated with this information and posted to the HomeBridge website at www.HomeBridgeWholesale.com
If you have any questions, please contact your Account Executive