"A new Fannie Mae HomePath® loan program has been expanded to allow up to a total of 20 financed properties (including those currently being financed) under an exclusive Prospect program.
Only Prospect gives you the opportunity to capitalize on both the below-market prices of foreclosures owned by Fannie Mae and the ability to carry financing on up to 20 investment properties for each investor. Most loan programs allow only four financed properties for each investor.
This new program is timely because the housing market is on the mend and investor sentiment is on the rise. Housing prices are showing solid gains. In the second quarter of 2012, the latest Standard & Poor's/Case-Shiller report shows that U.S. home prices rose 1.2% from the second quarter of 2011 and increased 6.9% from the first quarter of 2012.
Also, the National Association of Home Builders recently announced that housing market conditions are the strongest in five years. And the National Association of Realtors projects existing home sales will increase 8% to 9% in 2012, followed by another rise of 7% to 8% in 2013.
To qualify for the loan program, the property must be designated as an eligible Fannie Mae HomePath® property. The loan carries a fixed rate, and no mortgage insurance or appraisal is required. Loan amounts are available in both conforming and high-balance amounts. On conforming loan amounts, the loan-to-value ratio allowed is up to 70%. The program is available for one- to four-unit residential properties. Second homes are ineligible for this program."
