Because of rising home prices, Fannie Mae and Freddie Mac have increased their loan limits in 2018.
FHFA Announcement – Loan Limits in 2018
On average home prices have increased 6.9% over the past year.
Veros Real Estate Solutions, an analytics firm, forecasts that prices will continue to increase, specifically 4% over the next year.
But what about home prices in the Bay Area, Paragon Real Estate Group has a fascinating article looking at the “30+ years of San Francisco Bay Area real estate boom and bust cycles”:
Are you thinking of buying an investment property? We have loan programs for both experienced landlords and those just starting out. We can help you calculate how much money you can borrow, how expensive the property you can afford, and how much rent and/or appreciation would make this a wise investment.
When deciding whether to take the plunge an important consideration is whether to hire a management company to find tenants, collect the rent, deal with any problems, etc or look after the property yourself. If you are leaning towards managing the property yourself, a handy service is the ApplyConnect Platform, they provide a free online rental application and free (for you) rental screening.
Note, Allwin Capital is in no way affiliated with ApplyConnect, this post is purely for your information. Please use due diligence when choosing any financial service.
Instead of asking potential tenants to give you their Social Security number and other sensitive and a check for the cost of running a rental credit report, you have the option of just sending them an email invitation for them to directly purchase their rental screening, and then the report is sent directly to you.
New Fannie Mae guidelines will potentially help those with high debt. As long as the borrower’s debt to income ratio (DTI) isn’t above 50% and they have other positive factors, they could be approved for an affordable Fannie Mae mortgage.
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