Limits on lending for multifamily - must purchase within 100 miles of my residence??

[Annette Barnett]

Hey community,

I spoke to a lender yesterday and didn't totally understand what he meant.   He asked me what I currently own, which is a single family home, a duplex and a condo.  He said something about not being able to qualify for a multi-family loan because I don't already own a property with 5 or more units?  and that I would only be able to qualify for a property within 100 miles of my current residence?  Confused and don't totally understand this.  Would love your help.  

[Stephanie P.]

Quote from @Annette Barnett:

Hey community,

I spoke to a lender yesterday and didn't totally understand what he meant.   He asked me what I currently own, which is a single family home, a duplex and a condo.  He said something about not being able to qualify for a multi-family loan because I don't already own a property with 5 or more units?  and that I would only be able to qualify for a property within 100 miles of my current residence?  Confused and don't totally understand this.  Would love your help.  

 It's an overlay like @Ned Carey said. There is no specific guideline in Fannie Mae that requires you to live within 100 miles of new investor property. Some DSCR lenders, years ago (like 10 years ago) used to say they didn't want out of state investors or investors that live more than 150 miles from the subject property, but all (that I know of) have reversed that decision and allow it. PM if you need additional information or something more specific. Sounds like you need a new lender.

Stephanie