Florida home 2-unit home owners or those seeking to buy a 2-unit home in Florida need to be aware that, for the first time in nearly six months, Fannie Mae has recently levied strict guidelines on American homeowners.
In its official announcement, Fannie Mae released the following changes to its 2-unit mortgage financing programs, segmented by occupancy type.
Primary Residence
- Purchase: Dropping the Maximum Loan to Value (LTV) to 80%; Resetting the minimum FICO score to 640.
- Rate-and-Term Refinance: Dropping the Maximum Loan to Value (LTV) to 80%; Resetting the minimum FICO score to 640.
- Cash Out Refinance: Dropping the Maximum Loan to Value (LTV) to 75%; Resetting the minimum FICO score to 680.
Investment Property
- Purchase: Dropping the Maximum Loan to Value (LTV) to 75%; Resetting the minimum FICO score to 660.
- Rate-and-Term Refinance: Dropping the Maximum Loan to Value (LTV) to 75%; Resetting the minimum FICO score to 660.
- Cash Out Refinance: Dropping the Maximum Loan to Value (LTV) to 70%; Resetting the minimum FICO score to 680.
Without a doubt, Florida real estate purchases of 2-unit homes will suffer as a result of these restrictions. This could slow both purchase and refinance activity in the coming months.
Silver Lining Alert: Florida 2-Unit Home Buyers Act Quickly
Though Fannie Mae is recommending that lenders instate the new policy now, the “effective date” for this policy to be officially instated isn’t until September 1, 2009.
Therefore, if you plan to buy a 2-unit home, or if you own one and know you’ll need to refinance it soon, you should seriously consider moving on a Florida mortgage application and rate lock now.
Florida mortgage lenders could implement the new guidelines at any time and usually do so without warning.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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