Best way to get a 5th mortgage through a bank?

10 Replies

So it seems we're at a point of getting the 5 mortgage is becoming hard to do.  We have excellent credit, rental income we file on taxes, etc.  It seems to be very difficult with getting to that next mortgage with these banks.  

Anyone lending?  Do I need more of a down payment other than the 25% I'm putting down? 

You might need to look at private money once the banks start to turn you down.

@John Morgano  

In addition the income requirements, excellent (or whatever that is called) 720+ some institutions are going to want 12 months of reserves on mortgages 5-10.  They may review your insurance to make sure you have coverages they approve.

Keep putting your info here on BP.  Lenders like @Jerry Padilla  are answering questions AND lending money :)

Happy Mortgage Hunting!!

You honestly need to just shop around. We are in the process of buying property #6 and #7. In our experience it is less about a larger down payment (although the rules seems to be 25% although you can occasionally find 15 and 20%) and more about finding the right institutions. I have found that large "banks" are less willing to qualify one although mortgage brokers have no issues. 

For example- wellsfargo won't lend us money but buys all of our mortgages without a problem ;)

I'm finding a credit requirement of 680, not 720, on properties 5+ (luckily for me or my life would be a lot tough right now, I've been hovering around the 700 mark).

@John Morgano  I live and invest near you.  Reach out to First Citizens bank on hwy 160.

I met with them in December and they would really investor friendly. Gave me a few different hybrid options for financing.

Kevin

Thanks everyone for all the information and advice given.  @Kevin Nichols I will definitely look into that bank.  I've been to a few mortgage lenders and credit unions about the mortgage.  I'm trying now to see if I can leverage the equity in my properties and do the cash out refi instead of dipping in my own pockets again. 

Anyone else do the cash out refinance to get the down payments?

Originally posted by @Jerry Padilla :

@John Morgano you can go up to ten with conventional financing. A SFR requires 25% down and a MFR requires 30% down. A minimum of 720 credit score is required.

 As John said, 10 should not be a big problem if you have the right income/credit score to back it up.  Talk to a local mortgage broker.

such as @Amy Bonis