Mortgage max

12 Replies

I have been reading that there is a max of 4 mortgage loans a person can have is this a bank rule and how does one get around this?

Hi Debra and welcome to BP.  Your question has been discussed ad nauseam on this site.  Please use the search function.

Respectfully,

@Debra Muth This is partly true and partly a myth. Fannie Mae allows up to 10 mortgage loans per person and Freddie Mae allows up to 6 (just announced the increase). For a lender to be able to issue beyond 4, they need to be a Fannie/Freddie direct lender. Even if they are a direct lender, many lenders have an internal restriction to only 4 loans.

Upen Patel, Mortgage Banker

National Lender, Federal NMLS# 1374243

Medium tfsb   fdic   eh   squareUpen Patel, The Federal Savings Bank | [email protected] | (571) 331‑5161 | http://thefederalsavingsbank.com/upenpatel | Lender # National Lender NMLS# 1374243

That is good to know. I do not currently have a fannie or fredddie mortgage in any of my other properties the 3 I have are conventional loans and they are for personal properties. This purchase will be the first I will be doing as a rental property. Now I also understand that I would have to live in that property to qualify for a Fannie or Freddie property, correct? I was thinking about having my son who is 20 live in the property and become a partial owner of the property to make this work.

Originally posted by @Upen Patel :
@Debra Muth This is partly true and partly a myth. Fannie Mae allows up to 10 mortgage loans per person and Freddie Mae allows up to 6 (just announced the increase). For a lender to be able to issue beyond 4, they need to be a Fannie/Freddie direct lender. Even if they are a direct lender, many lenders have an internal restriction to only 4 loans.

Upen Patel, Mortgage Banker

National Lender, Federal NMLS# 1374243

Upen, I heard the same thing from a loan officer that did a presentation at our local REI. I went to the Fannie/Freddie web site but am not able to find any information on this. Do you use their sites and if so where might I find this - I've been all over their web site. I'm also talking to the loan officer today about some creative financing to learn what my options are for acquiring more properties. I have 2 mortgages now and am entertaining portfolio loans as a way to absorb properties. Thanks.

Originally posted by @Daria B. :
Originally posted by @Upen Patel:
@Debra Muth This is partly true and partly a myth. Fannie Mae allows up to 10 mortgage loans per person and Freddie Mae allows up to 6 (just announced the increase). For a lender to be able to issue beyond 4, they need to be a Fannie/Freddie direct lender. Even if they are a direct lender, many lenders have an internal restriction to only 4 loans.

Upen Patel, Mortgage Banker

National Lender, Federal NMLS# 1374243

Upen, I heard the same thing from a loan officer that did a presentation at our local REI. I went to the Fannie/Freddie web site but am not able to find any information on this. Do you use their sites and if so where might I find this - I've been all over their web site. I'm also talking to the loan officer today about some creative financing to learn what my options are for acquiring more properties. I have 2 mortgages now and am entertaining portfolio loans as a way to absorb properties. Thanks.

I am a mortgage banker, so its my job to know this info. I am not sure if the info is on the Fannie/Freddie website. We have internal resources and access to Fannie/Freddie info as a direct lender.

Why are you wasting time trying to find the info? That's what the professionals are here for.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

Medium tfsb   fdic   eh   squareUpen Patel, The Federal Savings Bank | [email protected] | (571) 331‑5161 | http://thefederalsavingsbank.com/upenpatel | Lender # National Lender NMLS# 1374243

Originally posted by @Debra Muth:

That is good to know. I do not currently have a fannie or fredddie mortgage in any of my other properties the 3 I have are conventional loans and they are for personal properties. This purchase will be the first I will be doing as a rental property. Now I also understand that I would have to live in that property to qualify for a Fannie or Freddie property, correct? I was thinking about having my son who is 20 live in the property and become a partial owner of the property to make this work.

These are two links that I recently used to find out if either of Fannie or Freddie had my loans. Unless you ask when you are going through the loan process, it's a mystery which of the 2 are servicing the loan.

https://knowyouroptions.com/loanlookup

https://ww3.freddiemac.com/loanlookup/

I used the 1st one that is Fannie and they displayed the correct information on both my existing mortgages they have.

I think this is useful for those that may not know if which of the 2 has the loan. I used Wells Fargo for the 1st one and the 2nd was with a local that sold it to Chase. But both went to Fannie.

Originally posted by @Upen Patel :
Originally posted by @Daria B.:
Originally posted by @Upen Patel:
@Debra Muth This is partly true and partly a myth. Fannie Mae allows up to 10 mortgage loans per person and Freddie Mae allows up to 6 (just announced the increase). For a lender to be able to issue beyond 4, they need to be a Fannie/Freddie direct lender. Even if they are a direct lender, many lenders have an internal restriction to only 4 loans.

Upen Patel, Mortgage Banker

National Lender, Federal NMLS# 1374243

Upen, I heard the same thing from a loan officer that did a presentation at our local REI. I went to the Fannie/Freddie web site but am not able to find any information on this. Do you use their sites and if so where might I find this - I've been all over their web site. I'm also talking to the loan officer today about some creative financing to learn what my options are for acquiring more properties. I have 2 mortgages now and am entertaining portfolio loans as a way to absorb properties. Thanks.

I am a mortgage banker, so its my job to know this info. I am not sure if the info is on the Fannie/Freddie website. We have internal resources and access to Fannie/Freddie info as a direct lender.

Why are you wasting time trying to find the info? That's what the professionals are here for.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

It's not a waste of time for me - I like being informed. :) And honestly there are so many people on this forum it's hard to find who is doing what/where/when/how. As I found out from the loan officer from our REI these limits have been lifted.

Originally posted by @Debra Muth:

That is good to know. I do not currently have a fannie or fredddie mortgage in any of my other properties the 3 I have are conventional loans and they are for personal properties. This purchase will be the first I will be doing as a rental property. Now I also understand that I would have to live in that property to qualify for a Fannie or Freddie property, correct? I was thinking about having my son who is 20 live in the property and become a partial owner of the property to make this work.

 @Debra Muth It is almost a certainty that all or most of those three loans you have are Fannie loans.  A conventional loan is a loan that is typically a Fannie or Freddie loan.  One of the few instances where they may not be is if they were issued by a credit union that held them in their own portfolio.

You do not need to live in a Fannie/Freddie property. Both issued investor loans.

Medium logo lf re cire box white bboxRussell Brazil, Associate Broker w/ Long & Foster | [email protected] | (301) 893‑4635 | http://www.RussellBrazil.com | MD Agent # 648402, DC Agent # SP98375353, VA Agent # 0225219736, MA Agent # 9052346 | Podcast Guest on Show #192

I know for sure one is not a Freddie or Fannie it is a farm loan private. I thought you had to live in the home to get a Freddie. That is new to me. What about a 230 or 203? Where you can get money for rehab in the loan you don't have to live in that either?

Thank you I will look into this. I remember this before it is coming back.

@Debra Muth A 203k is an FHA loan, and yes FHA is for owner occupant only. The vast majority of "conventional" loans are Fannie or Freddie, and you wouldn't know it unless you researched it.