Raleigh-Durham Real Estate Blog

There's a lot happening on the real estate front in the Triangle this week.

Topics in this market update:

1. Fannie Mae raised its current 4 property limit for 2nd homes and investment properties back to 10.
2. Gov. Bev Purdue signs off on additional tax credit for NC homeowners
3. 2 versions of the bill allowing for an updated $15,000 tax credit for homebuyers are in their final stages.

10 Property Fannie Mae Limit Returns

Today, Fannie Mae returned the limit for financed properties from 4 to the previous 10 allowed under its guidelines.  Requirements for properties 5-10 are tighter for investors and 2nd home owners, but the change should increase activity in the  purchase and selling market for investors.   For specifics and guidelines for the increased limits, click here. A quick summary follows:

• Lower LTVs will be allowed for investors holding 5+ properties (30% down required in some cases)
• Investors will be required to hold more substantial reserves for each property financed.  Reserves must cover PITI, homeowner association fees and related costs.
• Rental income for all held properties must be documented by 2 years of tax returns
• Stronger credit scores required from all borrowers.

Be sure to touch base with your lender for rates and specifics, or our office can refer you to solid financing sources.

Gov. Purdue Authorized Tax Credit Program to Lift Housing, Build Economy (c/o  www.DurhamRealtors.org)

In a move today to help stimulate the economy with the sale of more than 1,500 North Carolina homes, Gov. Bev Perdue signed the authorization that will provide new financial assistance to first-time home buyers. The authorization enables the North Carolina Housing Finance Agency to expand its Mortgage Certificate Credit (MCC) program, which allows eligible home buyers to reduce their federal tax liability by 20 percent of the mortgage interest they pay annually. The program is one of a handful in the nation and could save North Carolina home buyers more than $30 million.

“The MCC will help stimulate the housing market, which is integral to the recovery of our state’s economy,” Gov. Perdue said. “This is just the type of innovation from a state government agency that will help spur our economic recovery.”