Criteria for Five Loans & Above

[David Avetisyan]

I was wondering what the criteria is on the fifth loan for both the subject property, and on existing investment properties.

Furthermore, would it be any different if you are trying to refinance a cash purchase on a fifth loan with the property being seasoned only three months?

If I recall correctly, I have been under the impression that the reserve amount changes, but I was recently told that this is no longer the case. 

Any thoughts are appreciated 

[Che Chiu Wong]

Originally posted by @David Avetisyan:

I was wondering what the criteria is on the fifth loan for both the subject property, and on existing investment properties.

Furthermore, would it be any different if you are trying to refinance a cash purchase on a fifth loan with the property being seasoned only three months?

If I recall correctly, I have been under the impression that the reserve amount changes, but I was recently told that this is no longer the case. 

Any thoughts are appreciated 

 Assume you go with conventional residential loans (e.g. Fannie Mae loans), here is the Fannie Mae guideline to start.  I find the Fannie Mae website very informative (sometimes I can even catch things that my mortgage officer doesn't know).

Link

Couple things to consider:

1) You can't cashout refi if it's seasoned > 6 months. (this is different from your 1st to 4th loan)

2) Higher Reserve requirements (6 months worth of cash)

That said, there are always commercial loans to consider.