# Of Financed Properties Limit

4 Replies

Hey BP,

I was just told by a financier that I may not be permitted to buy some properties I have under contract because there is a limit of 5 financed properties.  I had never heard of this law or regulation.  I believe there is a Fannie/Freddie financing limit, but none of my properties fall under that category.  All are traditional financing.  

I also believe that FNMA limit is 10 financed properties.  Could anyone lend me some insight as to what this banker may be referencing?

Thanks so much for your help

Fannie limit is 10. Many banks have internal overlays that are more restrictive than Fannie guidelines. Just find a lender that doesnt have an overlay.

@Brian Irk , each bank is allowed to have their own overlay rules. If you have enough of your own unborrowed cash to cover 25% deposit for (up to) 10 properties (and sufficient reserves too), then you may yet find a FNMA Lender who'll let you buy all 10 at once.

Though, should you be surprised if your multiple loan applications raise a few eyebrows?

Makes me curious also: Why wait until you can afford to buy 2 or 3 properties all-cash (without buying), before you even start looking to leverage up to 10 at once? Good luck...

Thanks for the answers gentlemen!


Russell is correct. You may also want to look into refinancing all properties under 1 loan(blanket loan) Many local banks offer this option through their commercial division.  The amount of properties you have financed does not matter either.

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