Conventional Financing for 5+ Investment Properties

[Nate S.]

Hi all.

I am looking for lenders that will finance properties 5+ that work in Virginia. I am having a pretty hard time finding any banks that will finance property #5, as we already have 4 financed properties.

Does anyone know of any investor-friendly lenders that will work with me in Virginia? Good credit score, reserves, etc... so none of that stuff will be an issue.

Thanks!

[David Beard]

I made a few calls. Met Life, Everbank, and Nationstar are all "NO" on investment property loans when you already have 4 or more financed properties.

I called Citibank to verify, and they reconfirmed that they they'll do loans up to 10, and today's 30yr investment property rate is very competitive at 5.125% with .25 points, $665 of bank fees (processing/underwriting), and max LTV of 70% on 2-4 unit properties (75% LTV max on SFR). This was based on a sample transaction I gave him of a $100k purchase.

I spoke to Tom at Citi's 1-800 number on their web site. He said that Citi follows FNMA guidelines with very few "overlaysâ€. The overlays are the additional restrictions that most banks apply, one of which caps you at 4 financed properties. When you go over 4 loans, you do have to have 720 credit, 6 mths cash reserves on all your investment properties, and zero blemishes on your credit (i.e. nothing 30 days late in the past 12 mths).

U.S. Bank will do up to 6 in many area markets as well, if you call your local U.S. bank mortgage office.