Can you have two loans at ones?

Question

Good morning everyone! Please don’t judge too harshly if I don’t make any sense, just really need a financial advise.

I just got pre-approved for my first mortgage loan for $280-300k. I’m looking to buy in North Carolina - Raleigh, Cary or Wilmington area, i work remotely.

And I’m stuck with making the right decision. So I got the loan for a primary residence. And my goal is to convert that property into a rental in a year or two and buy a second property to make it a rental as well. The thing is, I have enough money saved for TWO down payments (to be more clear, I have $130k saved.)

So my question is, can I have two loans at the same time if I’ve got money saved for two down payments? Because I’m not sure if it’s even possible.

And If I can have two loans, should I then, maybe, for my first property look for something smaller and I not spend the whole loan amount that I got pre-approved for, and maybe, for instance look for something closer to $200-220, like a small house, an apartment or a townhouse/condo. Would that give me more chances to get a second loan and buy another small house, apartment, or condo/townhouse and make it a rental property?

Thank you everyone tremendously for any advice and assistance! And happy new year you guys!

Please Lee me know if i should provide more info.

Justin Roland · Answer

You would have to qualify for both loans on your debt to income percentage. Your first primary house can be 3 or 3.5% down and you could move one year later. The next year you could buy another primary for 5% or 3.5% down and keep the first as a rental. You could repeat that process every year and essentially leave a “wake” of rentals behind you

Russell Brazil · Answer

You can have infinite amount of loans.

Most people start with 10 Fannie Mae loans then move onto commercial loans after that.

Robin Simon · Answer

Yes - as people have mentioned, as long as you qualify for conventional, you can have up to 10, and then practically unlimited for "Non-QM" (non-conventional, not related to Fannie/Freddie rules) / DSCR loans

Bottom Line - as long as you are upfront and honest with lenders and everyone regarding occupancy intentions throughout and always (plans for primary vs. rental) you should be fine and have all the offerings.  Just don't mess around with mortgage fraud (lying or misstating anything to loan officers / lenders about living in vs. renting properties)

Chris Seveney · Answer

you could have five loans but the most it appears a bank will let you borrow is that $280k. Also recognize for a owner occupied loan your down payment will be a smaller percentage and an investment property will need 25% down. So you need to make sure you have DP for both. Personally I would start with personal residence and understand how to take care of a house before diving into both.

Blake Novotney · Answer

If the price were the same, people would much prefer a house vs a condo! Long-term rentals are in huge demand right now with the influx of so many people consistently moving here. What I am doing myself is buying "fixer uppers" in nicer parts of town to work on while I live there as my primary residence, and leave a trail of rentals behind like it sounds like you want to do also.

I'm happy to chat more anytime about specific neighborhoods to keep an eye on here in Wilmington, just shoot me a message!

Blake Novotney · Answer

Definitely would agree with Chris, start with your primary residence first! You will more than likely be able to put 5% down and use it as your residence. I would suggest getting settled and starting to look for an investment property in the same city to make things easier.

You have two ways to go about it- since you have enough saved for 20-25% down investment property loan, you could do so at the same time easily. The bank will look at the house from projected rental income standpoint as opposed to just your own personal income so don't worry too much about purchase price when buying your primary. Second option is to wait a year, then buy the second as another primary residence putting 5% down and turning the first one into a rental.

I am a Realtor / investor here in Wilmington NC, so if you find yourself here I'd be happy to meet for a coffee and chat more about strategy :)

Theresa Harris · Answer

As others said, you can have multiple loans as long as you qualify for them.  When considering a single family vs townhouse or condo, look at the big picture and all of the numbers.  Condos are less because you don't own one unit and share the common areas.  But they have condo fees and can be poorly run.  Condo fees can add up quickly.  Single family homes cost more and taxes are higher, but you don't have condo fees.

Run the numbers for both. When I did (condo I was considering was about $40K less than the house I was looking at), rents were comparable, but condo fees took a chunk of the rent meaning money was going to them instead of the mortgage as it would with the house.  I went with the home in the end.

Kristen L Garner · Answer

Hi Ana! You certainly can have multiple loans going at once. You can have up to 10 conventional loans and once you max that out you can utilize a category of loans called nonQM.  I would speak with a loan officer to strategize and make sure there is enough room in your DTI, enough funds for both down payments and closing costs, etc. For the investment property purchase you can use 75% of that projected rental income to qualify as well.

Ana Franchi · Answer

@Blake Novotney

Thank you Blake! I’ll definitely keep that in mind if I decide to look for properties in Wilmington area.

Just need to figure out what’s more profitable for an investment property, a single family or other options like apartments and condos. How is it in Wilmington area right now, whats on higher demand as rental properties - houses or apartments?

Can you have two loans at ones?

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