Ryan Heddleston

In the past few months, as the pendulum of mortgage guidelines has swung from way too loose to a little too strict, Fannie & Freddie have really bottled up investor loans. Investors used to have a maximum of ten total loans before F&F cut them off (this includes homestead property as well) and LTV's have shrunk from 100% down to 80%. So as foreclosures and inventory levels soar, the federal government thinks it's a good idea to stop investors (no matter what they put down or how qualified they are) from buying up this inventory and helping stabilize the housing market. Huh. That doesn't seem to make sense to me either. But don't worry too much. You and your client have other options.

The answer lies with your local bank. The same banks that weren't giving out sub-prime, Alt A, NINA, or other diseased loans other the past five years. These are the same banks (for the most part) that are still lending money and still relying on the same old conservative lending principals. Unfortunately, even though it is good to know that you have other options, the conservative nature of these banks isn't all good for your investor clients. Instead of getting your normal 30 year fixed rate loan, most local banks will put your client into a 15,20, or 25 year loan. This is great if you really want to pay off that loan quickly, but it really kills your cash flow because your loan payment is much more. Beggars can't be choosers I guess.

So make friends with your local lenders and don't lose deals for your clients that have already built a small portfolio of loans.

Ryan Heddleston

Team Leader

Keller Williams Realty - Investment Property Group

www.DFWInvestmentRealEstate.com