The credit crisis saw a tightening of investor loans in the fourth quarter of 2008. Fannie Mae said an investor could only have three mortgages. This was extreme and really put the slow down on investors able to enter the market but things are loosening up for investors. As of March 1st this year, Fannie Mae is changing their requirements and investors may have as many as 10 mortgages.

The lending requirements on the borrower is strict. Once the investor has the first four the next ones, five through ten require a credit score of 720, a 75% loan to value, no bankruptcies or foreclosures for seven years, no delinquencies on any mortgage for at least 12 months back and six months reserves required for every property. Yes, these are very strict items but at least it will open up the gate a bit for investors to get back in the game and help buy up foreclosures and other properties!