Diana Olick reported on March 16, on CNBC.com that landlords are finally getting some support from the administration.
Second homes and rental properties can now be refinanced at up to 105% of current market value. Borrowers must be current on their loans in order to be eligible.
The primary reason landlords have had trouble refinancing into today’s lower rates is that they did not have enough equity in their properties. This should help.
This action, combined with Fannie and Freddie’s recent announcement that they would again finance up to 10 rental properties per owner shows slow but sure support from the Obama administration for responsible investors.