Navigating Louisiana's Dynamic Real Estate Landscape

Fannie Mae's announced that its Desktop Underwrite (DU) system will include changes that increase the maximum allowable loan to value ratios for two-to-four-unit, principal residences. Come November 18, 2023, these guidelines will open doors with an impressive Loan-To-Value (LTV) ratio of up to 95% for 2–4-unit principal residence properties. Dive into what these changes mean for Louisiana's borrowers and investors.

Pivotal Changes for Real Estate Investors

For those keen on real estate, there's a significant shift in Fannie Mae's guidelines to consider. Currently, borrowers are limited to a maximum allowable LTV on a purchase and limited cash – out refinance to 85% for a two-unit property, and 75% for a three- or four-unit property, requiring larger down payments. With the updated guidelines on November 18, 2023, borrowers can flexibly commit as little as 5% of the property's purchase price or appraised value for their down payment. This update will open the doors for additional buyers of multi-unit properties. The property must be your principal residence and this change does not apply to high-balance mortgage loans and loans that are manually underwritten.

Understanding Louisiana's New Property Guidelines

The updated guidelines stand out for their inclusivity. They encompass many scenarios, spanning owner-occupancy, investment properties, and refinancing. Whether you're targeting a multi-unit property for personal use, strategic investment as a primary residence using the other units as rentals, or considering refinancing an existing principal residence property in Louisiana, the new guidelines cater to all.

Tapping into Rental Revenue Streams

A highlight of Fannie Mae's revamped guidelines is recognizing potential rental income when procuring financing. This means borrowers can integrate a property's rental income into their overall financial portfolio, boosting their borrowing potential.

Navigating Potential Constraints with Fannie Mae's 2-4 Unit Guidelines

These positive shifts come with specific considerations. Fannie Mae's guidelines may encompass limited cash-out options for borrowers, dependent on individual scenarios and the property specifics. Louisianans should communicate closely with trusted lenders, such as Standard Mortgage, to navigate these intricacies.

Looking Forward: Louisiana's Bright Real Estate Horizon

Fannie Mae's enhanced guidelines signify a new era of opportunities in Louisiana. Partnering with established firms like Standard Mortgage provides smooth sailing in Louisiana's ever-evolving real estate landscape. As November 18, 2023, approaches, Louisiana's property enthusiasts stand at the threshold of a promising future.