Real Estate Pros singled out for credit restrictions

If you are a RE Pro and need (re-)financing in the near future, GET IT NOW! Wall Street, which initially created the loose credit environment, is now redefining it. More documentation requirements, lower loan to values, higher Ficos, and - you guessed it - higher rates. The definition of "real estate professional" is broad, and can even include any person who owns more than two properties! Below is a listing of who can be considered a "real estate professional":

* Real Estate Brokers and Real Estate Agents, and their employees.
* Property Managers and employees of Property Managers or Property Management Companies.
* Home Improvement Dealers or Contractors and their employees.
* Home Builders and General Contractors and their employees.
* Real Estate Investors (defined as any person who owns more than two properties).
* Mortgage Brokers and their employees.
* Mortgage Lenders' employees, including principals and officers (excludes employees of national banks).
* Title Companies' employees, including principals and managers.
* Real Estate Appraisers and employees of Real Estate Appraisers or Appraisal
* Management Companies.


My recommendation (for anybody) is to consider the following:

* Do refinances required over the next 1-2 years now.
* Create financial reserves and flexibility by getting a Heloc.