maximum Fannie/Freddie loans now 10?

Question

After speaking with a friend who is a loan officer at Wells Fargo he told me the maximum loans has been raised to 10 loans.  Does BP Nation have any info on this?  Are their any new restrictions on these?

Russell Brazil · Answer

Yes

Stephanie Medellin · Answer

Currently Fannie is 10 and Freddie is 6.  Only 1-4 unit properties count in this total, and if there are multiple borrowers on the loan, the total of all properties owned by all borrowers will apply.

Derrick Lu · Answer

If I co-sign to help a relative purchase a property, will Wells Fargo consider this 1 out of their maximum 10?

Shaun Weekes · Answer

Fannie is 10 and Freddie is 4

Adam L. · Answer

Fannie is ten. Generally a single lender will have a maximum amount financed for one person. So, for example my company may have the ability to do 10 loans for a single person but not in excess of 2m in total loans. If you can qualify, they are out there.

Jeff Trevarthen · Answer

@Sean Ploskina There are brand new guidelines that came out and the 10 unit rule no longer applies.  I'll be doing a BP blog post about this in the near future.

The new guidelines allow for the loan amount to be calculated based on the PITIA (principle, interest, taxes, insurance, and association fees) divided by the monthly gross rental income.  That's it.  All you have to do is disclose employment and you the lenders usually won't even require paperwork.

Joe Impagliazzo · Answer

@Sean Ploskina

Fannie will go up to 10, Freddie will not.  Minimum of 25% down for a SFR after fiananced property #4

Bruce Runn · Answer

@Jon Holdman

I agree, once I passed 4 properties, the regular large banks backed away as it takes more work/time and they are set up to crank out the easy ones since they have so many "cookie cutter" mortgages.  They also constrain their people with rigid rules so they typically can't think outside the box to help.  I have a relationship with a loan officer from the last bank who went to work for a mortgage broker and has a network of investors that buy their loans so it's been a breeze now.  He has all my financials and knows my situation intimately so he knows he can sell my loans to any number of investors.  This allows me to bid and win with confidence that I'll close fast and easy.

maximum Fannie/Freddie loans now 10?

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