Diqualified after 10 properties or 10 conventional loans?

[Hugh Carnaha]

Howdy Guys!

I though the rules (fani and freddi) are if you hold 10 properties you can no longer qualify for more. I bought 20 at one time under a commercial loan so I could meet the deadline of the sale. This was my first purchase and I have zero conventional loans(or any loans really). I had a lender tell me that I was disqualified because I had more than 10 properties, not becasue I had more than 10 conventional loans.

Was this correct?

[Chris Mason]

It's 10 "financed properties." Not 10 properties, not 10 loans, 10 "financed properties."

500 properties with 1 blanket loan = 500 financed properties

1 property with 4 mortgages = 1 financed property

500 properties and 2 have mortgages on them = 2 financed properties

30 properties with 1 mortgage on each for $1 each = 30 financed properties

30 properties, owned free and clear, except for a single property with a $30 mortgage = 1 financed property (note this is the same total amount of debt as the previous scenario)