Posted on: 18th Mar, 2009 11:48 am
We have 4 investment properties and a small mortgage on our home, which makes 5 all together. Is there a cap on the amount?
lenders are putting a cap on the number of mortgages you are allowed - generally 4. you may find a lender or two who'll be generous with you, but you will also generally pay for such a privilege.
Fannie and Freddie Guidelines are now 10.
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Where can I find the information about the change to 10 mortgages?
Yes, there are a few lenders who will allow up to 10. Most if not all of the lenders here on this forum can help you with that.
If I own 8 rental properties with mortgages and am looking to take out a mortgage on a personal residence, does the limit apply?
yes you can do that
Hi JT,
The Fannie Mae and Freddie Mac used to allow a borrower to finance upto 10 properties. But last year they changed their guidelines and restricted the maximum number of financed properties to only 4. You may still find certain lenders who would allow you to finance 10 properties. But you will have to satisfy the strict qualifying requirements for that, like you must not have had a bankruptcy or foreclosure in the last 7 years, there should not be any late payments for the last 12 months, your rental income from all properties must be fully documented etc.
The Fannie Mae and Freddie Mac used to allow a borrower to finance upto 10 properties. But last year they changed their guidelines and restricted the maximum number of financed properties to only 4. You may still find certain lenders who would allow you to finance 10 properties. But you will have to satisfy the strict qualifying requirements for that, like you must not have had a bankruptcy or foreclosure in the last 7 years, there should not be any late payments for the last 12 months, your rental income from all properties must be fully documented etc.