Forgotten Gulf dispatches form Mobile and Dauphin Island

This new update to Fannie Mae rules relaxes their prior rule which stated that to qualify for multiple mortgages the MAXIMUM number of properties the investor could own was 4.  This new rule opens up more opportunities for well capitalized investors.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf

Here is a quick look at what is added and retained for Real Estate/home ownership in the new Obama Stimulus bill.  For us in Mobile, ALabama and Dauphin Island, my friends in Atlanta, Ga and Seagrove, Fl there are some rays of hope.  The housing industry may have been blamed for leading us into this mess but it is only broadbased industry that can lead the WHOLE country back onto a stable footing.

Here are some highlights:

 So here's what we have achieved:

1) the loan limits will be raised to $727,000 in high cost areas

2) the tax credit will be raised to $8,000 with NO payback [a true credit]

3) interest rates have come down 125-150 basis points

4) the bill has over $50 billion in it for foreclosure mitigation.

Geitners Treasury plan is signaling that the second half of TARP and TALF will be used to:

a) Mitigate foreclosures through a government guarantee

b) Drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages

c) Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10 IF the investor has high quality credit and Debt to Equity.

In addition, we preserved what we have - which some tend to forget is always on the table when these negotiations start up again:

a) mortgage interest deductability

b) real estate tax deductability

c) the $250,000/$500,000 cap gains exclusion

(an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects).

Rejoice where we can and work doubly hard to secure a stable home and lending market so job loses can be stopped and new hiring begun.