FNMA mortgage qualification question?

[Jacob Beg]

Hi All,

Having reached the 10 property limit for FNMA loans, if I refinance four of those properties with a commercial lender taking title under under a newly formed LLC, am I still able to use the positive cashflow of these properties as qualifying income, that is, if I go buy additional four under the conventional underwriting? Having removed them from my person name but still personally guaranteed by myself, could I buy 4 additional properties under FNMA investment property product?

Although these properties appeared on Sch E for well over 3 years, the newly formed LLC will lack the requisite two year history. I am dependent on the positive cashflow from those properties to meet the FNMA DTI guidelines and have been able to use it while they are under my personal name.

Thanks in advance.

[Daniel Hennek]

I suggest reading the link provided and you should have your answer and more context as well.  To help...

Guidelines state that properties counted for the maximum financed properties are 1-4 unit residential properties where the borrower is personally obligated on the mortgage.  

Guidelines state some exclusions as well, such as commercial real estate, multi family of 5 units or more, etc.

Having a commercial loan does not make a property a commercial property. Having your LLC name slapped on title does not remove your personal obligation on the mortgage. Simply changing a name does not change the underlying fundamentals of your situation and playing name games doesn't circumvent guidelines. You're either personally obligated on the mortgage or not...