Fannie, Freddie to Include Investment Homes in Refinance Program

The following is an article by Kenneth Harney published in the San Francisco Chronicle on 3/15. In it, Mr. Harney tells us that the broad refinance program to allow owners to lower payments and avoid foreclosure, will include investment homes (SFHs) that have loans that are on Freddie or Fannie’s existing portfolios. Mr. Harney also gives each agency’s website so owners can see whether their house qualifies. Calling the servicer is recommended as a first step.

This is the first time I see anything coming out of Washington that recognizes real estate investors as an important part of the overall equation.  To quote Mr. Harney: “Brad German, a spokesman for Freddie Mac, said second homes and investment properties with one to four units are important because they may “help stabilize neighborhoods and housing markets.” Refinancing investor-owned rental units, he added, can “help reduce renter evictions by putting landlords in a (more affordable) refi that improves their chance of success.””
Many of the usual restrictions will be lifted, providing hope for many overtaxed investors.
I hope many of you succeed in refinancing your investment properties based on this program. The full article is enclosed. Highly recommended reading.

Fannie, Freddie broaden refinance help
Kenneth Harney,  SF Gate.com
Sunday, March 15, 2009 (03-15) 04:00 PDT Washington - –

Fannie Mae and Freddie Mac have published the rules governing their coming mass refinancing campaigns, and they’re more favorable - especially for owners of second homes and small investment properties - than indicated by the White House and Treasury last month.
Read more on SFGate.com