Investor · Jefferson, GA · Member since 2014 · 17 posts · 6 votes
I recently applied for a 30 yr conventional cash-out refinance on one of my rental properties that I own free and clear and was denied the loan. The reason is I would have exceeded the bank's 4 investor loan maximum limit. I've read that Fannie Mae has lifted their 4 loan limit and now allow up to 10 investor loans. I've called around to several other banks I do business with and they still adhere to the 4 loan limit. I'm not sure why many of the banks have not raised the limit. I was wondering if anyone knows of any investor friendly banks located on the northeast side of Atlanta or Gwinnett County that will do up to 10 conventional investor loans.
@Dean Miller this is a very common "overlay" that banks will have. Fannie/Freddie have had the ability to do 10 loans for a long time. They also don't require seasoning, can use 1 year of tax returns, etc. Overlays are the EXTRA rules banks put on top of their rules to be more conservative with their lending approach. The more experienced you get the more banks you will want to know. Do not be surprised if you call 200 different banks in your investor career. It's just part of the job. There are plenty of banks that will lend up to 10 and beyond. Thanks!
I've used Starkey Mortgage on numerous refinances, including cash out. They allow up to ten properties. They will get you a 30 year fixed with a good interest rate. They will sell the loan once it closes to the bigger mortgage companies, but all the terms stay in tact. Randy Lipp is my loan officer. I don't get anything in return for recommending him or Starkey Mortgage. I can tell you I've used a number of community banks, and big banks. Randy Lipp is the best loan officer I have ever worked with. Starkey is very professional and delivered. No extended closing dates, or bait and switch interest rates. Good company to do business with. Hope this helps.
Thanks everyone for your input, advise and recommendations. It looks like I'll have to make a few more calls to other banks in my area to find a bank that does not have an "overlay" policy. My back up plan is to transfer title into my wife's name, let it season for 6 months then cash-out refinance with my current bank, Fidelity. She currently has no mortgages so we should be able to obtain four more mortgages under her name. I did run this idea past Fidelity and they do not have a problem with this strategy but they do require it to season for 6 months after we transfer title.
Like the others have said, you're running into an overlay. 4 is really tight. I wouldn't bother with putting it in the wife's name, just find an investor friendly bank or broker. If @Thomas Williamson is right about Starkey Mortgage, sounds like a solid referral for that guy Randy.