Portfolio loan preventing Fannie Mae loan

[John Shoup]

Do we have any underwriters that can help? I have zero mortgages in my personal name, but I have a portfolio loan under my sole owned LLC, in which I'm NOT a personal guarantor. Because I have "ownership interest" in over 10 properties (23), I don't qualify for the loan backed by Fannie Mae which is offered by the bank I've been dealing with. They have been blaming it on the Fannie Mae guidelines... The guidelines state that, with a 720 credit score or better, you may qualify for up to 10 "Fannie Mae insured loans". Nowhere does it state that "ownership interest" is factored in the guideline. Have I missed the boat on this ?

[Jesse Gonzalez]

@John Shoup

Fannie Mae just changed the policy to state the following,

"Ownership of property that is held in the name of a limited liability company (LLC) or partnership where the borrower(s) have an individual or combined ownership in the LLC or partnership of 25% or more, regardless of the entity (or borrower) that is the obligor on the mortgage." This would be subject to the maximum amount of financed properties allowed. The following below is not subject though"Ownership of a property that is held in the name of an LLC or partnership where the borrower(s) have an individual or combined ownership in the LLC or partnership of less than 25% and the financing is in the name of the LLC or partnership."

So, if you can change the ownership in the LLC to less than 25% on your part then you may be eligible for the fannie backed loan. Hope that helps.

The guidelines are found here, https://www.fanniemae.com/content/guide/sel052714.pdf#page=281 and the specific page is 281 of 1331.