Ways around the 4 loan rule and advanced financing

[Account Closed]

After the real estate crash I ended up with 8 properties and 5 mortgages. I could not get any more loans because of the new more strict guidelines. Recently I found a bank, Washington Federal Savings, that holds their own loans and they are willing to do cash out refinancing on my paid off homes. They also say they do portfolio loans.

Has any one used them and also how have any other investors moved from doing single mortgages to getting more money available to continue investing in this tight market.

I am a buy and hold investor/rehabber basically saving for my retirement.

[Matt T.]

There is FNMA financing for up to 10 properties but they place additional burdens on the borrower for the loans. My understanding is loans 1-4 only require you to show 2 months reserves for PITIA (pricinple, interest, taxes, insurance, association dues). In order to get loans 5-10 you must show 6 months PITIA for all properties financed. They will count funds in checking, savings, money markets, etc. Retirement and 401k type assets will only be counted at 70% of their current value.

Again, not an expert, but that is my understanding. My local credit union holds all their NOO loans in house but still underwrites per the FNMA guidelines. So, yes, I am continuing to obtain cash out financing in this tight market, but no, I have not found any ways around the guidelines.