Updated Fannie Mae rule for cash buyers

Fannie Mae has updated their rule for cash buyers. Previously, if you bought a house and wanted to do a cash out refi, you needed to wait 6 months to apply for the new loan. Fannie Mae changed their rule last month to allow buyers to complete the cash out refi, without the 6 month waiting period. The change was posted in Announcement SEL-2011-5″ a Selling Guide Update. There will be guidelines to meet, like loan-to-value, credit scores, etc., but it is a viable option for investors who would like to get most of the equity out, to be able to use it on another property. Tha max LTV, will probably be 70%. The new loan cannot be higher than the cost of the property. About 30% of buyers there days, are cash buyers, so this new change, could help them out, both people who areinvestors and those who bought the homes as primary residences.

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