Will We Be Able To Get Mortgages?

[Brett Wolk]

Hi,

I'm 26 and do not currently work. However, my father, 85, receives a decent government pension of around $50k a year. Together, we have a large amount of cash that we'd like to invest in rental properties, but I spoke with an adviser today who said that we may have trouble getting banks to give us loans, citing the age of my father and my lack of an income. I should add that both of our credit scores are excellent, and that we have 2 fully paid off properties from which we could draw equity.

Would anyone be able to speak on this matter? I've read that traditional banks will offer around 4 mortgages, and then it gets much tougher, probably requiring new avenues such as portfolio lenders, but I wonder if we could even get those first 4 mortgages?

Thank you,

Brett

[Bill Gulley]

It is illegal to discriminate in mortgage lending based on age, I gave a 92 year old man a 30 year fixed Fannie Mae loan! You need to see your bank or mortgage broker and get another adviser!   

It gets "harder" with each loan as your debt to income ratios will be at play in the application process. Seems currently that 4 is the limit, this number bounces around. There are different rules to "cash out" for owner occupied, second homes and non-owner occupied (rentals). If your paid off properties are owner occupied, refi those first, if not there are several methods you might ask about with a lender that both sells loans in the secondary market and holds loans in portfolio.  Good luck :)