How to get a 5th mortgage?

[Jeff S.]

I own 4 condos in Chicago, I live in one and rent the other three out.  I would like to start buying investment property in Florida but was told by my lender that you can only have 4 mortgages on homes.  Other than buying these florida investment properties with cash, does anyone know of a good way I can finance future deals?

[Adam Johnson]

I am moderately experienced and have quite a few mortgages.  The very first question I ask any lender is whether they use Fannie/Freddie underwriting guidelines to make lending decisions.  If they answer yes, I thank them for their time and move on.  I don't waste their time or mine going any further.  It isn't worth it.  I don't ask about rates or terms until AFTER I ask this question.

Your issue is exactly why I do this.  I already know that I have too many mortgages.  I respect their time and realize that what they are doing does not match with what I am doing.  If they use Fannie/Freddie underwriting, they are simply bundling mortgages for resale.

If they say that they don't use Fannie/Freddie for ALL mortgages, spend some time talking with them.  You are likely going to want some type of portfolio loan product.  That means that the bank holds the mortgage in their own portfolio versus selling it as part of a mortgage backed security.

You may find rates a little higher.  You may find there is an adjustment written in 3-5 years down the road.  You may find a balloon payment at some point.  These are trade-offs.  If you get the deal done, it should be one that makes financial sense anyway.  If it still makes sense with these differences, get it done.  Don't sweat about having to pay a little more because if you don't close the deal, you are making nothing anyway.

I don't sweat over the differences.  I find the right deal, find the funding, and close it.  This has worked very well for me.

Good luck!