I need loan options for primary residence

[Allen L.]

Hi everyone,

Over the past six years, I’ve built a portfolio of 70+ properties, primarily single-family rentals. My wife and I are now at a stage in life where we’re looking to move from a condo rental in the city to a home in the suburbs. While we both have strong W-2 incomes, the large number of properties I own has made conventional lenders and agents caution that securing a loan for our primary residence could be a highly complex process.

I've consulted with some local banks I work with, and one has expressed potential interest in financing our primary home. However, their terms involve a 20-year amortization, a 5-year ARM, and a rate of prime + 0.5% thereafter.

I’m exploring other options for financing and would appreciate any suggestions or advice. The timeline for this is not immediate but likely within the next six months.

Thank you,
Allen

[Jay Hinrichs]

Quote from @Allen L.:

Quote from @Tim Delaney:

That seems odd to me assuming you aren’t in a highly negative cash flow situation. Are you trying to afford a house much more expensive than your W2s could cover? Or do you have too many conventional loans on your investment properties?

No and No. Also there is no restriction on acquiring conventional loan on primary residence even if you have maxed out on conventional loan for rentals. What is odd? Have you tried to apply for conventional mortgage when you have a lot of rentals? I maxed out my conventional rental loans when I had around 20 units, and that was basically hellish. 

Basically all rentals, even ones owned under LLC, come up during loan DD as long as you file them under one tax return as personal, that was what happened to me earlier.

your owner occ loan should be done at todays rate what your bank quoted you was commercial terms and not even good ones.. Right now commercial rates are more like 6% with a point. the only loans from banks I see tied to prime are vertical construction loans or horizontal construction loans.

I had the same issue with I had maxed out my rental loans with lenders like Country wide and Wells fargo that reported to fico.. Trying to get an owner occ loan was a chore ended up getting it done but what a pain.. owner occ underwriters are used to very simple tax returns and when you have more complicated ones it just takes longer.. But you should get some hits from the Lenders on bp  that do owner occ loans one of them should be able to help you.