4 properties mortgaged which means HELOC and 1st mortgage counts as one. If you are buying a residence there is no limit according to 2 mortgage bankers I spoke with recently.
Also, commercial bank lenders don't care about the number of mortgages. Relationship, FICO score etc. is what they're interested in. After all they're mostly lending with balloons in 5 years anyhow.
The rules is that you can't get a new Fannie Mae or Freddie Mac loan if you have four or more mortgaged properties. So, getting the HELOC (amazed you could do that, frankly) doesn't bump into that rule.
As Lynn mentioned, there are ways to avoid this rule.
Lynn, would you please clarify ? I don't understand....purchasing a residence? Do you mean a residence for you to live in? what if they are rental properties?
BOA lender told me in an email that if you are purchasing a residence it didn't matter how many (investment) mortgages you had. That was before Fannie Mae lifted the restriction on allowing only 4 mortgages.
I checked because two mortgage brokers had told me they were restricted to 4 mortgages regardless.
Ben posted back in feb that this rule was to be lifted. My broker said she has heard rumors but nothing in writing and therefore can cannot complete a new loan transaction. Any help here guys would be appreciated. I am trying to stay loyal but I want to purchase a few more properties.