Real Estate Investor · West Palm Beach, FL · Member since 2014 · 18 posts · 8 votes
I have 8 mortgages. One of the mortgages is a commercial loan (blanket mortgage) on 14 properties. All properties are residential. That means there are 21 properties mortgaged with 8 mortgages. This includes my primary residence.
Is the commercial mortgage included in the FNMA 10 mortgage limit? I think a commercial loan should not be. If not, that means I have 7 mortgages that fall under the FNMA limit and I can get 3 additional mortgages and still fall within the limit, correct?
I read in a BP discussion that the FNMA limit may be a 10 "property" limit and not a 10 "mortgage" limit but there was no conclusion on that. Does anyone know?
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
10y
Glenn Kopensky the majority of the time commercial loans do not show on your credit report. This is something you can ask your bank loan officer.
What city are these properties in?
Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
10y
Chris M. The original poster stated that he personally guaranteed the loan so in this instance if he TELLS the bank when applying for his next loan then yes they would count against him correct.
Whether or not they are reporting to fico is a different matter since they could not report to fico but still have his personal guarantee.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Glenn Kopensky Doesn't the "...in an LLC, with no personal guarantee.." also require the individual to own less than 25% of the LLC, for it not to count against their limit?
@Glenn Kopensky Doesn't the "...in an LLC, with no personal guarantee.." also require the individual to own less than 25% of the LLC, for it not to count against their limit?
That example was lifted directly from fanniemae.com, so I'd consider it sufficiently authoritative to conclude that it can be done. Maybe not with one particular bank or lender, but someone'll do it.
The 25% thing you are thinking of, I think, is ownership interest in an LLC. Scenario just crossed my desk where, as a form of parent-to-child wealth transfer, the daughter had a 33% ownership interest in daddy's LLC. Daddy is now pissed that we asked him to cough up business returns, profit and loss statement YTD, balance sheet, etc.