Wells Fargo Update: No more loans if you have 4+ mortgages

[Ben Bakhshi]

We just got a HELOC approved with Wells Fargo for a borrower that has over 4 mortgages. We started an application for another HELOC and they said that their rules have recently changed.

Just so you know..

[Kyle J.]

Dawn Anastasi Every lender is going to have their own overlays (rules), so just keep calling around and you'll find someone who will loan to you.

I don't do business with Wells Fargo, so I don't know their specific rules. However, as an example, here are some of the different things I was told by different banks/credit unions when I recently called around for loans on investment properties:

- One bank said they only allow up to 4 loans total, and only ONE with them. (So even if you only had two loans total, if one of them was with this bank they would not do another one for you.)

- One credit union said they allow a borrower to have 4 investment loans plus a loan on their primary residence (for a total of 5 loans).

- Two lenders said they allowed up to 10 loans.

- Another bank said they only allow 4 loans total (including the primary residence).

As you can see, a wide variety of responses. So, like I said, just keep calling around until you find someone willing to work with you.