Primary Residence Conventional Loan After 10 Properties?

Question

Hi all!

I'm selling my primary residence soon and it has me thinking. I now am well above the 10 property limit when it comes to conventional guidelines on investment properties. I've been using portfolio loans for my investments for a long time now.

After I sell my house I plan on renting for a while, but I eventually might want to purchase another primary residence in the future. Am I going to have a hard time getting a 30 year conventional loan for a PRIMARY RESIDENCE now though? Does this 10 property limit apply in this situation as well?

My DTI should be okay as I've been investing longer than 2 years now and my cash flow (as long as it's all accounted for) keeps my DTI low.

Thanks so much in advance!

@Albert Bui?

Jayden Hakunti · Answer

For conventional primary residence there is no limit on investment properties.

Albert Bui · Answer

Hi Mehran

Primaries unlimited financed properties or have no limit.

Albert Bui · Answer

cool thats good to hear, however the other side of the story thats not really talked about by lenders is that if you have a lot of other properties in the area you are trying to buy a property "in" then it may be very difficult to purchase an eleventh financed property as a primary residence unless it makes sense for your given scenario.

Often times this requires:

- a Great LOE - letter of explanation

- supporting documentation like relocation letters from employers, LOE's from family members, spouses, marriage certificates, mammograms (show increased family size), etc etc list goes on

- your  track record with other properties, like did you buy them as a primary then switch to investment properties (underwriters test to see your past "integrity," with mortgage transactions). They can see this by seeing if you filed a homestead exemption which is typically done in in CA to reduce your property tax basis by 7k to lower your taxes and this shows you lived there and then they go back to see if you switch it to a rental later by checking to see if you have an offsite mailing address. Verfied by pulling past title records. They can also see if your original acquisition mortgage was a non owner or investment loan by looking to see if you have rental assignment riders as is often times signed when doing a loan as an investment property.

- underwriter will go over your whole file and all documentation to ensure there is no doubt the proposed property will be a primary residence.

Maybe ive gone through this too many times .....I've seen what it takes to get files to get "approval," and Ive also seen what causes files to get "declined"

Mehran K. · Answer

Thanks so much for a quick response Albert. That makes me happy!

Primary Residence Conventional Loan After 10 Properties?

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