Beginning August 1st 2008, Freddie Mac is implementing a regulation regarding investors and their mortgages. Investors will only be allowed to finance mortgages on 4 investment properties (primary residence mortgages are not counted). Current investors with more than 4 mortgaged properties will be grandfathered in, however, the loans associated with these mortgages will NOT be allowed to be refinanced.

Refinancing prior to August 1st may be a great idea if good rates/loan programs are available. Remember, this regulation takes effect only for each person. For example, a married couple can finance 8 investment properties if they choose to hold 4 in one name and 4 in the other. This may be something to consider for investors who own many mortgaged properties.

Lenders may start making internal changes to comply with this regulation BEFORE the August 1st implementation date, so watch for it. Also, we expect Fannie Mae to follow suit soon after Freddie Mac. For more in depth information, contact Gillian Meadows at 513-317-6986. She is a very knowledgeable Mortgage Loan Officer with Humphries Mortgage in Mason, OH.