You know, these are all the bad guys who ran up home prices to their own profit, with no concern for the inevitable fallout; they colluded with overzealous, borderline blind, lenders who gave anybody and everybody a loan with no attention paid to their ability to repay said loan.
CNBC.com
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That's all over now. You can't get a loan without pledging your first born in collateral, and if you're an investor, you rank somewhere just below Angelo Mozilo.
Or do you? Last month Fannie Mae made a little change in the rules for all-cash buyers to apply for mortgages. I don't recall a press release, and I'm quite sure I'm on their mailing list. But there it is, "Announcement SEL-2011-5," a "Selling Guide Update:"
Currently, Fannie Mae requires a minimum of six months to elapse between the time a borrower purchases a home and subsequently applies for a cash-out refinance.
The Selling Guide has been updated to allow a cash-out refinance within six months of a purchase transaction when no financing was obtained for the purchase transaction.
There are of course all kinds of parameters, including maximum LTV (loan-to-value ratio), documentation, arms-length transaction and "all other cash-out refinance eligibility requirements and cash out pricing applied." The mortgage cannot be larger than the value of the home of course.
Read the full story here: http://www.cnbc.com/id/43668757
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