Last month Fannie Mae made a little-publicized minor change in the rules for all-cash buyers to apply for mortgages, according to CNBC. The government-sponsored mortgage provider has loosened its regulations to allow a cash-out refinance within six months of a purchase when no financing was obtained, rather than the previously required minimum of six months.
The change is a blessing for investors, CNBC said, who can now get equity out of their investments at a faster rate. It also offers homebuyers a chance to compete with all-cash investors.
“There is a role for everyone in stabilizing the market, including those who invest in properties to repair and improve them, owner occupant buyers, and those that build and maintain quality, affordable rental units,” said a Fannie Mae spokesperson Andrew Wilson. “We believe our requirements are carefully crafted to ensure that we are financing legitimate buyers who opt to purchase with cash.”
All-cash buyers now represent one-third of the market and heavily populate the market for distressed sales. [CNBC]