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Updated 2 days ago on . Most recent reply

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Brian Martine
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Number of bank loans one can have at a time, putting minimal down.

Brian Martine
Posted

How many loans will a bank allow you to have to buy rental properties at one time??

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Stephanie Medellin
  • Mortgage Broker
  • California
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Stephanie Medellin
  • Mortgage Broker
  • California
Replied

Conventional loan guidelines (for loans sold to Fannie Mae / Freddie Mac) will limit you to a max of 10 financed properties if buying investment property, but have no limit if you're buying a new primary residence for yourself.  Some lenders may have overlays and set their own limits.  Of course, you always have to qualify for each additional loan.  

It's important to remember that if you have 5 conventional loans, and then your next 5 loans are not conventional but still on residential real estate, you won't be able to get another conventional loan on an investment property because you already have 10 financed properties.  You also won't be able to refinance an investment property into a conventional loan once you have more than 10.  It's always based on the number of financed properties - not the number of loans. 

Other loan types may follow the above guidelines or set their own.

Strictly investment purpose loans usually have limits that vary by lender, such as 5 loans or a max of $3,000,000 per borrower from that specific lender.  While they may have a limit to how much they will lend to you, they don't necessarily limit how many other loans you can have outstanding.  Some will.  It really varies by lender.

Working with a broker that has access to numerous lenders can allow you to keep growing your portfolio.  

Hope that helps!

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Stephanie Medellin, Loan Factory

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