Casper Wyoming real estate catches the eye of many an investor. Now there is another incentive to buy. Uncle Sam is appealing to investors to purchase more properties in Wyoming and other states, Casper vacation homes and second homes included.
In an announcement from Fannie Mae dated February 6, 2009, the government effectually opened up more financing for investors. The new policy allows Casper investors, individually or jointly, to finance up to ten properties, including condominium complexes and their second homes. Fannie Mae’s previous policy limited the number of concurrent loans for investment properties in Casper Wyoming to four.
Approval for investor and second home borrowers to own 5 to 10 financed properties of Casper WY real estate—or homes in Casper Mountain, Alcova, Evansville, Mountainview, Glenrock, Douglas—is contingent upon the buyers meeting requirements.
Buyers must meet the following requirements, which apply to all loans:
- Eligibility requirements
- Underwriting requirements
- Delivery requirements
Eligibility requirements for five to ten financed properties depend on the transaction type. The minimum credit score must be 720. For one Purchase of a second home or investment property, the LTV is 75 percent, the CLTV 75 percent, and the HCLTV is 75 percent. One Limited Cash-Out Refinance may have 70 percent LTV, 70 percent CLTV, and 70 percent HCLTV. The Purchase and Limited Cash-Out Refinance of two to four units of investment property may also be 70/70/70 percent.
Underwriting requirements maintain that the borrower may not have any history of bankruptcy or foreclosure within the past seven years. Neither can the borrower have delinquencies on any mortgage loans within the past 12 months. Full documentation is required, including rental income, transcripts of tax returns, and for reserves for all properties including second homes, investment properties, and multiple financed properties.
New reserve requirements apply to all second-home transactions and to investor and second-home borrowers who have an interest in multiple-financed properties. Requirements vary depending on whether the property is a second home or investment property and the number of properties owned by the investor. Generally, it is two months of reserves on subject properties or second homes and six months for other properties.
Delivery requirements apply to lenders. Lenders must use Special Feature Code 150 when delivering mortgage loans secured by these 5 to 10 financed properties.
The policy applies to the number of mortgages currently being financed, not simply the number of mortgages sold to Fannie Mae. Thus, Uncle Sam is depending on those with the money “to provide stability, liquidity, and affordability to the nation’s housing system.” (Please note that HomeStyle® Renovation mortgage loans continue to be limited to four properties.) For more information about residential, recreational, or commercial real estate in the area, contact Dennis Baker at (800) 743-0705.
