Hi. I currently have 5 traditional single-family loans plus a HELOC on my main residence. I'm being told by my loan officer that I've reached the limit of 6 per FNMA. However, web searches seem to suggest I can go up to 10. I'm wondering if my loan officer is mixing a local rule tied with my credit union as opposed to a true Fed limit (interestingly, last year my old loan officer from the same credit union said it was 10. New guy says the rule has changed). Does anyone know if I'm able to get more loans?
Other side info:
*Current 5 are all in my name, HELOC is in my and wife's name. We cannot get any new mortgages in my wife's name as she brings in no income
*I've started to investigate portfolio loans (commercial loans) but they are way expensive and will cut into most net cash flow, or I'll have to put down much more thus reducing monthly ROI.
Thx in advance.
It is 10 last time I checked. You are correct, that institution must have additional overlays if they are saying 6.
@Jon Quigley Jeff is correct. The limit is 10. You need a lender that offers the multiple financed properties program. Your credit union might have a limit of 6, but that is their own guideline.
Thank you both
10 in your name 10 in spouses.
Use a mortgage broker. A banks internal policy might be lower, but if you use a broker they are going to be using multiple banks, therefore you shouldnt run into an issue til you hit 10.
Also consider if you are married, and you each qualify for the mortgages independently, you could conceivably get up to 20 between the 2 of you.
@Jon Quigley 10 is the max however it's not your ceiling for single family property if you have a loan officer that's knowledgeable about how investors structure their loans, your limit is pretty much infinite. I have clients in Texas that's purchased over 30 and 40 single family homes.
The 6 homes must be a bank overlay. If that's the case, find another one.
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