Conventional (Freddy/fanny) loan limit

[Alipate Moleni]

I've heard that the limit to the amount of conventional loans one can have is 10, but that most people will not be able to get more than 4.

What prevents people from getting more than 4 conventional loans if the limit is 10?

All answers are greatly appreciated!

[Eric Veronica]

@David Ripplinger Fannie Mae typically allows you to use proposed rental income when purchasing a property to offset the new mortgage payment. In many cases you can even use the excess of the rent as additional income. If you are buying in markets that cashflow well (not Cali or New England) then DTI (debt to income) ratio should not be a concern.

For example there is a BP member on here from California who invests in Ohio.  I have financed 7 properties for him this  year alone.  Being in California his housing expense is crazy high.  The first Ohio investment property closed back in January 2019.  At that time his back end debt ratio was 49%.  By the time we closed the 7th property his debt to income ratio was down to 39%.  

The income from his job and his debts were virtually the same throughout the year. That 10% difference in DTI was based solely on using new lease income.

There are certain scenarios where using proposed rental income or new leases is not allowed however in most scenarios it is acceptable.