Getting Over 10 Mortgages

[Sean Forner]

I am about to have 6 properties and 6 mortgages. I have a great lender, but unfortunately they can only lend up to 6 properties when going with conventional financing. I know Fannie Mae lenders can go up to 10 properties, but you need 6 months PITI in reserves for all of the properties that you have a mortgages on. I want to expand rapidly, but finding financing after 6 properties is proving to be difficult. How do you all get properties and grow your portfolio? I don't want to have to wait to purchase cash because then I will be limited to one house a year. That is slow growth to say the least.

[Chris Mason]

Retirement accounts can be used for reserves. 

Freddie Mac's cap is actually six. So your lender is probably Freddie only. And Freddie is also 6 months PITI for each rental property.

You're now about to bounce over to Fannie. For 6+ financed properties, she will want 6% of the unpaid mortgage balances as reserve.