On April 22, 2008, Freddie Mac announced that the maximum number of financed property limit will be changed from 10 to 4. The rule goes into effect on August 1st, 2008 and has a number of implications to investors. First, if an investor was planning to take advantage of some of the excellent deals on foreclosures that exist here in the Atlanta, Georgia market, they need to act now. Second, if an investor was planning to refinance an existing investment property with an agency loan and they own more than 4 properties, this new ruling will prohibit them from refinancing as of August 1st. Again, the time to act is now.

While this news would have been a non-issue a few short months ago, there are currently very few options for real estate investors today outside of the two main agencies - Freddie Mac and Fannie Mae. Fannie Mae is expected to follow suit and reduce their max property rule to match Freddie Mac’s.

You can read the entire bulletin here:

Richard Ryan
www.primacymortgage.com