How To Get A Mortgage With More Than 4 Properties Financed

[Mike Cartwright]

I am running into this issue now. I know Fannie Mae now allows investors to purchase 5-10 rental properties but with 25% down and requiring a 6 month reserve on all financed properties. I don't meet all those requirements yet unfortunately. My question is if I were to put all my rental properties I have now into a LLC will it waive this 4 properties financed rule? My thought process is I could finance any new property under my name and then transfer into LLC so I can wash, rinse, repeat. The financing program I was looking at is "homepath" which only requires 10% down with no mortgage insurance. But since I have 4 financed properties(3 rentals, 1 home) I don't qualify.

[John Chapman]

That will not work. As I read your post, you want to transfer your current Fannie Mae properties to an LLC. I presume you are on the mortgage, so transferring title does nothing to get around the 4 properties limit, and Fannie Mae will still count you as having 4 mortgages. My understanding is that even if you were to transfer title to an LLC and then refinance in the LLC name (with a personal guarantee, which is generally required), then you still are limited by the 4-property rule.