conventional mortgage limits for married couple in NC

10 Replies

I'm doing a cash out refinance on a primary residential which we'll turn into a rental soon.

As I heard the mortgage limits is 4 per person, I try to finance it under my name only so that we can get up to 8 loans.

My mortgage broker told me that husband and wife count together on loan counts even if only taken out in 1 person name.

I get confused. Does that mean if we can only apply for 4 loans together if we're married? Or we can get 8 loans in total?

If lender will count on loan all together, it doesn't make sense for me to try so hard to get it approved under my name only. (I just relocated to US so I doesn't have a long credit history, it is very difficult for me to negotiate a loan by myself. But we'd like to apply as much conventional mortgage as possible and build my credit score at the same time).

We're in North Carolina. I need some suggestions on how should I structure the finance.


@Jinyu D. - 4 financed properties is not a hard limit, it is just the limit most of the large banks set. I am working with a local bank here in Charlotte that will lend up to 10 properties. I was told though that the requirements do change a little for properties 5-10 (75% LTV vs 80%LTV).

Message me if you are interested and I can give you my contact.

Freddie Mac has a loan limit of 4 loans per person. Fannie Mae has a loan limit of 10 loans per person. You will get slightly worse terms and a harder time getting through underwriting on loans 5-10 compared to loans 1-4.  A lot of larger banks only work with Freddie Mac.

Loans that have both of your names on it count against both of you.  You can get 8 total conforming Freddie loans if you completely separate the loans out (each of you will have to qualify for the loan individually).  Let's say you buy 2 houses and put both of your names on the loan, in this scenario, you can only take out 4 more Freddie loans (2 each, separate names) for a total of 6 loans.

@Jinyu D.  Your lender is misleading you. Change your mortgage banker/lender.

Both husband and wife are responsible for the primary home debt, even if just one of them is the borrower. So even if the debt does not show up on the credit report, the mortgage banker should manually apply it.
For investment/rental properties, only the borrowing party is responsible.

Freddie Mac only allows for 4 conventional mortgages. Fannie Mae allows for 10 conventional mortgages per individual. So you each can have 1 primary residence + 9 investment/rental properties, for a total of 19 conventional mortgages between the two of you. As you go up in the mortgage count underwriting, LTV and credit score requirements go up.

You need to find a Fannie Mae direct lender that does not have an internal restriction of 4 loans, and one who is knowledgeable. If you have not already put money down on this loan application, I would say cancel it and find someone else. I would not have confidence in this person.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

Aagreed with other posters here, look for a new lender, get recommendations from realtors / other investors in your area. 

Thanks everyone. I can always get good advice when I ask BP. This is a very good community!

@Upen Patel may I ask how do you treat the mortgage applied as primary residence and become a rental later. If it's only under my husband's name, does the mortgage banker will manually apply to me?

@Jinyu D.  Primary becoming a rental, should be treated as rental after it is no longer a primary. Only borrowing individuals would be liable for the debt. In certain states, if you are not a borrower, but are on the title, then you are still responsible for the debt. If you are going to be on the title, then check the laws of your resident state (not property state). The best would be to only have the borrower on the title, so you don't have to deal with state laws.

Upen Patel
Mortgage Banker, VA Loan Specialist
National Lender, Federal NMLS# 1374243

Your best bet is to not try to game the system or hide anything from a lender.  Just flat out say what you are trying to do and why.  There is nothing improper about it, and the loan officer will be able to tell you whether that bank's overlays allow it or not.

@Jinyu D. During the housing collapse Fannie Mae lowered the amount of mortgages down to 4.  However Fannie has raised the limit up to 10.  Many banks though have not raised their limit to coincide with Fannie.  But that just means you can only get X amount of loans at Bank 1.  Just move over to a mortgage broker who will shop amongst many banks, so you can keep getting more loans till you hit the 10 mortgage ceiling. 

Keep in mind though that you will want to keep your DSCR (Debt Service Coverage Ratio) above 1.25, so as to not inhabit your future borrowing.

@Jinyu D.

Different lenders have different requirements.

Some lenders I've spoken to view you as liable for the debt just because you are on title (even though the loan is not in your name).

Other lenders I've spoken to count the loans that are in your name only. Even if you are on title, they will not count as one of your mortgage slots.

You have to call/interview different lenders and see what their or their investors' requirements are. 

Best of luck!

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