Financing in Texas

[Francois Frigon]

I've presented a plan to my Wells Fargo lender to purchase one Duplex and two 4-plex in the next 12 months.  The meeting went fine and they pre-approved my plan.  Here's what I learned though about financing in Texas:

1) A person (or LLC) can take a mortgage loan for up to 5 doors with terms of 30 years (one 4-plex would equal 4 doors)

2) A commercial loan (though my LLC) has a shorter term (15 to 20 years) and take longer to process (up to 60 days)

Any thoughts about this?

I'm a little surprise to realize I can not have a mortgage loan for more than 5 doors.  That forces me to take on a Commercial loan for most of my projected properties.