Investor · Peachtree Corners, GA · Member since 2014 · 1k+ posts · 1k+ votes
Someone asked me this question the other day. They had several properties with high interest rates which they couldn't refi conventionally, but they were able to find a portfolio loan. He is wondering whether or not he can get a conventional loans since he has none now. Anybody have any insight into this?
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
No. The type of loan is irrelevant for the "four loan limit". Those limits refer to "mortgaged properties". They don't refer to "the number of conventional mortgages". So, if you already have four mortgaged properties, you're in the next category for getting a conventional mortgage.
Now, some commercial mortgages may not appear on your personal credit report. And portfolio mortgages are typically commercial mortgages. But even if they don't appear on your credit report, they still count.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
No. The type of loan is irrelevant for the "four loan limit". Those limits refer to "mortgaged properties". They don't refer to "the number of conventional mortgages". So, if you already have four mortgaged properties, you're in the next category for getting a conventional mortgage.
Now, some commercial mortgages may not appear on your personal credit report. And portfolio mortgages are typically commercial mortgages. But even if they don't appear on your credit report, they still count.
Davidson, NC · Member since 2015 · 34 posts · 6 votes
11y
Fannie Mae will finance up to 10 properties to the same owner. The requirements become a bit more stringent after the fourth property. For example there are greater reserves required, no cash-outs (only "limited" cash outs). So as long as your friend has less that 10 financed properties, they could go through Fannie as long as they meet the underwriting requirements. The hardest part of the FNMA 5-10 properties program is finding a broker/lender who will do those loans. Stonegate and Crescent Mortgage both used to do them.
Rental Property Investor · Atlanta, GA · Member since 2013 · 128 posts · 64 votes
11y
Jonathan Cundiff with Wells Fargo here in Atlanta will go up to 10 properties. So will @Jerry Padilla with MB Financial Bank. I can send you Jonathan's information if you're interested.
@Jon Holdman is correct. He is very knowledgable and an expert in the financing field as well.
Portfolio or conventional or hard money or private money....... Every residential loan counts - even a blanket mortgage - counts for as many mortgages as properties that is is covering for residential.
Thanks, but I think they have a few more than ten. And from what I understand the overlays on houses 5-10 can be daunting hence the question about four.
Houston, TX · Member since 2013 · 11 posts · 7 votes
11y
Quit worrying about small dollars. Think like the sharks. Consult your attorney, wealth, CPA and tax advisers...why not place it in the name your C Corp Trust which manages one of your LLCs? Protection of assets and personal liability is key.
Sharkettes and sharks never lose everything due to damages.