Non-Traditional Lending Options

[Damon Vaughan]

Looking for recommendations for non-traditional lending options for residential properties (SFH or duplex). Need new strategies to purchase properties and refinance existing after reaching 10-loan limits with Fannie Mae and Freddie Mac. This is for a LTR approach.

Thanks in advance.

Best,

Damon

[Albert Bui]

Quote from @Chris Davidson:

@Damon Vaughan check your portfolio first. Is there equity there to consolidate and pay off a loan and move debt to existing properties and free up your 10 loan limit?

If not look at DSCR, or Portfolio loans. Also refi existing properties into these type of loans will free up the loan limit.

Or creative options with owner carries, subject to, or assumptions can be ways to get funds. Keep up the work!

In Theory it free's up your "loan limit," however if you're personally obligated (you signed the mortgage note personally yourself as an individual) then it still counts as a financed property no matter if it was a commercial note, a private note, a DSCR or non QM note/loan, or a conventional note.

So contrary to popular belief an underwriter will still count it with respect to fannie/freddie underwriting guidelines. 

However, if you sign as a manager of a LLC then it can possibly not count and may free up your financed properties count against your total 10 fannie/freddie loans assuming you dont have a PG (personal guarantee) elsewhere (usually a separate 2 page doc).

@Matthew Kwan@Carlos Valencia