The 5 financed property restriction

5 Replies

@Danielle Perry - you should be able to get up to 10 financed properties with Fannie Mae now.  If you are married and both working, the potential is there to do up to 20 financed properties:  10 in each name. 

If the bank you are currently working with only does 5, then they have their own overlay/rules.  Reach out to an investor friendly mortgage broker in your area to see what lenders will accommodate the 10.

Andy

The 10 rule does suck, there is no doubt about that.  If you have bought these things right and they are cash flowing well, it may be advantageous to take time to throw all of your rents at one balance and pay that property off so that it can be replaced.  There is also the option of a partner, or commercial lending.  

Originally posted by @Andy W.:

@Danielle Perry - you should be able to get up to 10 financed properties with Fannie Mae now.  If you are married and both working, the potential is there to do up to 20 financed properties:  10 in each name. 

If the bank you are currently working with only does 5, then they have their own overlay/rules.  Reach out to an investor friendly mortgage broker in your area to see what lenders will accommodate the 10.

Andy

Andy is right. The rule in now 10 with Fannie Mae. Once we got over 5 we had to purchase the homes jointly (husband and wife) and could no longer purchase separately and both our credit scores had to be over 720. It required a little more paper work, interest rate was a little higher, but it all worked out. 

@Danielle Perry  That's a limitation of your bank. You can get up to 10 Fannie loans. Just have to find a mortgage banker who can do it.

Good luck.

Upen Patel

Mortgage Banker

Federal NMLS# 1374243