How many Fannie Mae investmtent property loans excluding Primary

Question

My credit union says I can have only 10 financed properties including the primary residence. Is that correct? I thought it can be 10 + primary residence mortgage.

Nick Belsky · Answer

@Kay Kay

For Conventional only...

It can only be 10+ the primary if your primary is the subject property for the 11th transaction.

So you can't own a primary and 9 REOs, then purchase another REO as #11.

You can own 10 REOs, then buy a primary as #11.

Check out Freddie Mac.  Depending on what kind of other REO you have, there are some exceptions that do not count towards the 10.  Chapter 5306.

Cheers!

Chris Mason · Answer

The basic Fannie Mae guideline, at it's most liberal, is the same everywhere.

If the subject property (123 Banana St that you are applying for a mortgage on) is a primary residence, there is no limit.

If the subject property is a rental, you are capped at 10 financed properties.

So yes in theory you could buy 10 rentals, a primary, a primary, a primary, and so on.

Stephanie P. · Answer

Banks, credit unions and correspondent lenders sometimes have "overlays" meaning if Fannie/Freddie will allow you 10 financed properties plus your primary, they may think that's too much risk for them, so they have internal guidelines that reduce the number of properties financed.  For a long time, many lenders did the same thing with cash out.  The guideline from Fannie/Freddie is 6 months, but numerous lenders would make borrowers wait 12 months before they could use a new appraisal amount for cash out.  Now, only the most conservative out there require 12 months.

Stephanie

The Fannie/Freddie rule is 10+ the primary like @Nick Belsky said earlier in the thread.

Kay K. · Answer

@Nick Belsky

Perfect, thank you! My subject property is a REO and not a primary. So, they are correct.

May be I can convert my primary to a rental and go for a primary conventional mortgage.

Kay K. · Answer

Thanks for your reply.

It is not having 10 Conventional loans with the same lender. I have 9 conventional loans and 1 primary residence loan.

I thought I can get one more conventional loan for investment but they said you reached the Fannie Mae cap of 10 loans.

Khemraj Sarju Jr. · Answer

This is based on a bank to bank basis. They all have different terms. Many people have a variety of ways of setting this up as well with multiple LLCs. Do you see yourself needing 10+ loans with one bank? Will they offer what you need for all the properties? Rehab, short term, long term?

How many Fannie Mae investmtent property loans excluding Primary

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