If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
Matt
To give you some clarification, Fannie Mae counts "financed properties" in their guidelines for a reason. If a residential property has a lien against it, it's considered financed.
@Shaun Weekes gave good advice along with the seller's guide. Read it to get clarification. Just because a loan is in a blanket mortgage with other properties does not mean it won't show on a drive report and count against your total number of "financed properties" and just because it doesn't show up on your credit report, doesn't mean it doesn't count as financed. Commercial properties are defined by Fannie Mae as property that's not a 1-4 unit residential property so even if you have 5 properties in a blanket, if they're single family non-owner occupied properties, they're not considered commercial.https://selling-guide.fanniema... You get 10 non-owners plus your owner occupied for a total of 11. After that, you're in DSCR country.
Yes, you would still be able to buy a primary you would just use a Portfolio Program. It offers a NICHE opportunity to land just outside of the traditional guide lines. You could also take 5 or more properties and put them into a "Blanket Loan" which is more commercial. They would no longer report to credit, you can close in the LLC and you start over!
If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
You can get a primary from Fannie in the scenario that you're describing if you qualify of course. You can have 10 loans that are investment and number 11 can only be for your primary residence. Below are the guidelines direct from Fannie Mae for your reference.
If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
You can get a primary from Fannie in the scenario that you're describing if you qualify of course. You can have 10 loans that are investment and number 11 can only be for your primary residence. Below are the guidelines direct from Fannie Mae for your reference.
Yes! This helps tremendously. I always thought I could only have a maximum of 10! This is great news. I'll plan on 10 conventional investment property loans and 1 primary loan.
If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
Matt
To give you some clarification, Fannie Mae counts "financed properties" in their guidelines for a reason. If a residential property has a lien against it, it's considered financed.
@Shaun Weekes gave good advice along with the seller's guide. Read it to get clarification. Just because a loan is in a blanket mortgage with other properties does not mean it won't show on a drive report and count against your total number of "financed properties" and just because it doesn't show up on your credit report, doesn't mean it doesn't count as financed. Commercial properties are defined by Fannie Mae as property that's not a 1-4 unit residential property so even if you have 5 properties in a blanket, if they're single family non-owner occupied properties, they're not considered commercial.https://selling-guide.fanniema... You get 10 non-owners plus your owner occupied for a total of 11. After that, you're in DSCR country.
@Matt Wells you have some good comments above but there's also some important lessons here. Not every lender will do what we need to have done as investors. Sometimes we have to find the right lenders to work with in order to be successful in this game. Yes, you can get an 11th mortgage if it's your primary...and a 12th...and a 13th, etc. - as long as it's your primary. But that's a long way off and these are good problems to have. I wrote an entire post on how to find "real estate investor friendly" lenders. You can read it HERE if you like. Hope all of that makes sense.
@Andrew Postell This is helpful! So, after I max out my 10 conventional investment property loans, I can get multiple conventional loans after that if they are primary. For example, I max out my 10 conventional investing loans. Then get a conventional loan on a primary residence, and move every 2 years into a new primary residence with a new conventional loan. My previous primary residence on a conventional loan effectively turns into an investment property because I've moved into a new primary residence on a new conventional loan. Then repeat as many times as I want. Does this sound accurate?
@Andrew Postell One more hypothetical question. Say I have 10 conventional investment loans and separately in an LLC I have 10 commercial investment loans. Can I still get multiple primary residence conventional loans?
@Matt Wells yes, absolutely. The 10 commercial loans should not even show up on your personal credit and you don't personally own the properties (because your LLC does) so they don't count at all. Or maybe I should say that they SHOULD NOT count....some lenders are a little crazy with investment properties. So just make sure you are working with investor friendly lenders and you should be ok.