10 Mortgage Limit Problem

[Spence Rodman]

I have recently purchased a house that i have moved into.  I purchased it using my business line of credit from a local bank who holds the mortgages to many of my properties.  I intended to refinance the loan on a 30 year conventional mortgage.  We talked to the mortgage lender prior to making the purchase and they felt that refinancing the property would be no problem, because they had refinanced another property for me earlier in the year.  Once the new house was purchased the lender started looking at my updated financials and realized that I had purchased 2 other properties this year using a local bank and now had 11 mortgaged properties and would no longer qualify for a traditional mortgage.  

My question is does anyone know if there is an exception to the 10 mortgage rule for a personal residence.  I have read that somewhere, but not sure of the validity of the source.  Currently the plan is to put it on a bank note with the bank that i currently have the credit line with, but would really like to get a traditional 30 year loan if possible.