Three Mortgages & One HEL

[Account Closed]

Most lenders will only finance up to four purchases. If I have four properties (three with just one mortgage and the other with just one HEL), will I be able to qualify for a fourth mortgage?

[Travis Sperr]

The restriction is for mortgaged properties, not the number of mortgages you have. For sake of conversation, you can have 4 mortgages on one property 1st, 2nd, 3rd, 4th postilion, this would be one mortgaged property. In this example you would be eligible for more mortgaged properties. So the short answer to your questions is yes, if the HELOC is against the property. Alternatively if the HELOC is against one of the other three properties, than it wouldn't count against total mortgaged properties.

Although as Jon Holdman, mentioned the 4 property limit is a bank overlay, if you find a lender that underwrites directly to Fannie and Freddie you can go up to 10 mortgaged properties.