New primary residence with 10 existing loans?

Mortgage Brokers & Lenders
3yFollow

New primary residence with 10 existing loans?

Doug QuistPro Member
Investor · Salt Lake City, UT · Member since 2015 · 56 posts · 25 votes

I have 10 existing loans with only one being a Jumbo on my current primary residence. The others are on investment properties (6 fourplexes, one duplex, a single family rental and a STR vacation property).

In speaking with a new, to me, mortgage broker, he was concerned that I could not get a conforming loan because of the existing 10 loans I already have even if I decided to put over 50% down to get under the 726.2k limit.  This would be for a new primary residence for me -- owner occupied, of course.

It was my understanding, from others, that the 10 loan limit only applies if the property is an investment property rather than an owner occupied property.

Please help me understand the rules.  Thanks!

1Reply
78 views

Most Popular Reply

Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Doug Quist:

Two say 10 is the max and three say there is not max, because it is owner occupied, which was my understanding.  Thanks, @Jay Hurst for providing the citation.

This won't really apply since I will most likely get a jumbo loan, so conforming rules won't apply.


 If there is no NMLS number, they are just guessing.... 

Hurst Real Estate, INC4.991 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

34 Replies

Jump to latestLatest
  • Doug QuistPro Member
    OP
    Investor · Salt Lake City, UT · Member since 2015 · 56 posts · 25 votes
    3y
    Quote from @Nick Bolding:

    I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.


    Why would I trade in one or more of my 2.5% to 3% loans for a DSCR at a much higher rate?

    As this thread has, I hope for all those reading it, demonstrated, there is no limit for me, in this case, since I'm buying a new primary, owner occupied property.

    I'd be happy to have the referral for the new construction fourplexes that will be done in about six (6) months as long as they can write business in AZ and UT.

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

    i think i know a bank that can help to finance your primary , they are the most liberal bank that i've ever known related to number of financed properties.

    0Reply
  • Nick Bolding
    Realtor · Memphis, TN · Member since 2018 · 19 posts · 9 votes
    3y

    Pick your poison ultimately. Trade in a lower rate for the ability to buy a new primary or don't buy a new primary unless you put a significant amount down. In reality you're trading out for a higher rate regardless if it is a DSCR or not. So again. Pick your poison. Definitely a pickle to be in but what a good problem to have considering that your 10 loans more than likely being in solid income with 25+ properties. Good luck.

    0Reply
  • Jamie Jones
    Lender · Nashville, TN · Member since 2017 · 205 posts · 107 votes
    3y
    Quote from @Nick Bolding:

    I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.


     Why would he want to do that, unless he needs to pull additional cash out? I'm assuming his existing loans likely have way better rates than what he could get in today's market. 

    1Reply
  • Jamie Jones
    Lender · Nashville, TN · Member since 2017 · 205 posts · 107 votes
    3y
    Quote from @Nick Bolding:

    Pick your poison ultimately. Trade in a lower rate for the ability to buy a new primary or don't buy a new primary unless you put a significant amount down. In reality you're trading out for a higher rate regardless if it is a DSCR or not. So again. Pick your poison. Definitely a pickle to be in but what a good problem to have considering that your 10 loans more than likely being in solid income with 25+ properties. Good luck.


    He could buy a new primary with 5% down (assuming DTI isn't an issue). Why do you think he would need a significant down payment?

    0Reply
  • Doug QuistPro Member
    OP
    Investor · Salt Lake City, UT · Member since 2015 · 56 posts · 25 votes
    3y
    Quote from @Jamie Jones:
    Quote from @Nick Bolding:

    I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.


     Why would he want to do that, unless he needs to pull additional cash out? I'm assuming his existing loans likely have way better rates than what he could get in today's market. 


    Thanks all, but I think I'm going to keep all my 10 existing loans which are at 2.5 to 3% and ALSO get an 80% LTV loan for a new primary residence. In this case, I can "have my cake and eat it too". I expect the new $1.3+ M loan will be at about 7.5%. :-(

    2Reply
  • Jamie Jones
    Lender · Nashville, TN · Member since 2017 · 205 posts · 107 votes
    3y
    Quote from @Doug Quist:
    Quote from @Jamie Jones:
    Quote from @Nick Bolding:

    I missed that you are trying to get a new primary. I would for sure refinance one of the existing loans if not multiple into a DSCR loan product. If you need a mortgage broker I'll send DM the broker I use.


     Why would he want to do that, unless he needs to pull additional cash out? I'm assuming his existing loans likely have way better rates than what he could get in today's market. 


    Thanks all, but I think I'm going to keep all my 10 existing loans which are at 2.5 to 3% and ALSO get an 80% LTV loan for a new primary residence. In this case, I can "have my cake and eat it too". I expect the new $1.3+ M loan will be at about 7.5%. :-(


     Great plan Doug! 

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Doug Quist- you are correct

    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    You could always refinance one of your existing 10 mortgages into a DSCR loan and transfer the vesting to an LLC/entity. This will free-up a spot.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free