Help! Got Told No on a Cash Out Refi - Have 7 Financed Properties

[Aaron Smith]

Ok, I am in the process of doing a cash out refinance on another investment property.  I currently have 7 properties financed (my primary home, 3 homes with traditional loans, and then a portfolio loan that has 3 properties on it).  

My file just came back from underwriting as denied due to the fact that I have 7 properties financed. I always thought you could finance up to 10 with Fannie/Freddie, but apparently they said I couldn't have more than 6 properties financed if I want to do a cash out refi. I am completely befuddled. I have owned the property for 8 months, so was already set to do an appraisal and get the 75% LTV like I have done several times before.

Does anyone know a conventional (not commercial) lender than can do a cash out refi on a property that has seasoned 6+ months in NC even though I already have 7 properties financed?  I really don't want to do another commercial loan right now since I want to lock up another 30-year fixed rate with great rates before the market keeps increasing.  Please help, thanks!

[Chris Mason]

Thanks @Russell Brazil.

Hi @Aaron Smith,

Fannie Mae has been allowing cash out refinances for folks that own up to 10 financed properties for several months now.

You are likely encountering an overlay.

Time to dial for dollars. 

Be as crystal clear as possible: "Hey LO Schmuckatelli at XYZ Mortgage, this conversation and processing my paperwork is a complete waste of your time if your firm has overlays pertaining to the number of financed properties owned. I own seven financed properties. Are you 100% certain, without reservations, that you do not have this incredibly common overlay pertaining to the number of financed properties I can own and still get a cash out refinance?" (Note the emphasis)