Two borrowers, two properties each, equals 4 properties???

[Ryan Whitelaw]

Hi All. First post for me.

My business partner and I purchased a rental 9 months ago with all cash. Now we're looking to do a cash out refi to purchase another property, but our mortgage broker informed us that only one of us can be on the loan since we each own 2 properties. Cumulatively, we own 4 properties and adding one more would be over Fannie/Freddie limit.

This makes zero sense to me. Isn't the lenders risk reduced if there are two guarantors versus just one? Sure, we could just put one of our names on the loan, but this would not be equitable risk for both of us. Especially considering that the note on our next purchase will be much higher than this one.

Please let me know if you know of any conventional lenders that would be willing to put us both on the note (not interested in private money at this point). Thanks in advance for any info.

[Jon Holdman]

Find a new lender. For one thing, the Fannie Mae limit is 10, not 4. You will be limited to 70% LTV and you will need six months PITIA reserves for all properties including the one being financed. You may have a hard time doing this refi until you've owned this property 12 months.