HELOC Count Against 10 Loan Limit?

[Michael S.]

I've been checking everywhere to find this answer, but can't find it (even after asking a HELOC loan officer), so figured I'd try here. Since I'm getting close to my 10 loan limit, I wanted to see if a future HELOC I get is considered a loan that goes against my 10 loan limit. Any thoughts?

[Chris Mason]

Originally posted by @Michael S.:

I've been checking everywhere to find this answer, but can't find it (even after asking a HELOC loan officer), so figured I'd try here. Since I'm getting close to my 10 loan limit, I wanted to see if a future HELOC I get is considered a loan that goes against my 10 loan limit. Any thoughts?

 If it's vanilla Fannie with no overlays, the limit isn't actually on the number of loans. It's on the number of financed properties. So one property with 6 mortgages (yes, I have seen that) = 1 financed property. 

A HELOC is a mortgage. So if that property is otherwise free and clear it'll count as a financed property moving forward. If there's already a mortgage on it, then it's already counting towards your 10.