Does refinancing conventional into portfolio loans restart the four mortgage limit?

[Cal C.]

Someone asked me this question the other day.  They had several properties with high interest rates which they couldn't refi conventionally, but they were able to find a portfolio loan.  He is wondering whether or not he can get a conventional loans since he has none now.  Anybody have any insight into this?  

Thanks!

[Jon Holdman]

No.  The type of loan is irrelevant for the "four loan limit".  Those limits refer to "mortgaged properties".  They don't refer to "the number of conventional mortgages".  So, if you already have four mortgaged properties, you're in the next category for getting a conventional mortgage.

Now, some commercial mortgages may not appear on your personal credit report.  And portfolio mortgages are typically commercial mortgages.  But even if they don't appear on your credit report, they still count.