New Rules on Jumbo Loans

2 Replies

Hi All:

I currently own 4 investment properties and my owner occupied home loan making a total of 5 mortgages. I am looking to purchase a new home. My lender has informed me that there is a new regulation for jumbo loans that an individual can only have a total of 4 mortgages. I have been advised to decrease my loans to 3 now, in order to qualify for a 4th. The jumbo loan of course would be for my new owner occupied home. Thoughts?


Keep talking to lenders.  1-4 mortgages is the norm but it is not the rule. I spoke with more than 20 mortgage brokers and banks over a course of a year before I found a national lender that could provide 10 mortgages.  The rates after mortgages 1-4 are about 1%-1.5% higher for mortgage 5-10.    After 10 mortgages I am told the rate goes up another 1%-2% but I have yet to get that far (on #8).   

I have just refinanced my primary with a jumbo loan and have 10 mortgages. Jumbo loans are not packaged to Fannie  or Freddie so banks can make their own rules. From my experience recently, Jumbo criteria are actually looser and rates lower than they have been for a while. Having rentals does restrict your choice of lenders but they are out there.

If you are buying in CA, inbox me and I can share my broker name with you,

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