Updated about 12 years ago on . Most recent reply
Limit of 2 conventional loan applications per year
Hello all BP members,
I am about to close on a second rental SFH, financed with a conv. loan. The first loan was also conventional; both loans are within 4 months.
My loan officer told me that I have to wait a bit to apply for a third loan because of a rule that limit (beginner?) investors to two loan applications with a 12-month period. Can anybody please explain to me what this rule is about?
Thank you in advance.
-John
Most Popular Reply
I can understand it from the bank's perspective. Of course that doesn't mean you can't go to another bank that has more lenient standards! However, as a new investor, don't be too quick to poo-poo their concerns. They do this loan thing for a living after all, so they know well what can go wrong ;)
Just make sure you run some worst-case scenarios on repairs, vacancies, etc, while taking into consideration your cash reserves and income. What is safe and prudent for one person could be reckless for another.