In a stroke of genius - well, a reaction to what was a poor decision in the first place - Fannie Mae has now increased the investor loan limits from 4 properties to 10.
Limiting serious investors to 4 properties just didn't make sense - these folks don't deal with numbers like that. We're not talking loans for weekend warriors who want to flip a house or two, or invest in a condo. These new limits are designed for the serious investor, the ones who have excellent credit, money to put down (20% or more), and they're set up with tighter guidelines than before. And that, in my opinion, is a good thing.
This opens up a number of opportunities here in the New River Valley, specifically in Blacksburg and Radford. I've said it before and I'll say it again ... and again ... and again - investing in college communities makes sense. For the past couple of years at least, Virginia Tech has announced an on-campus shortfall for residents, which means students are having to find off-campus housing. Investors are smart to snap these up, because not only do the universities get larger, but so do the periphery of businesses that follow universities. Where there's a university, so also there are research facilities, medical schools, design and engineering firms, and more. Housing becomes a premium.
Before you say I'm a cheerleader for housing - which I am, but I want to be an honest cheerleader - I'm not suggesting everyone jump in the housing pool. However, in the past two weeks I've worked with an investor, two sets of parents with kids at Virginia Tech, and one first-time buyer who have specifically targeted our market because of the university-focus.
That's proof enough. Thanks, Fannie Mae.