All Forum Posts by: Doug Quist

Quote from @John Morgan:

Your primary counts in the 10. I ran into the same problem a couple years ago. My lender told me my primary counted.

Yes, it counts into the 10, if buying new second home or investment property, but how many loans you have is not important or considered when purchasing a new primary, owner occupied mortgage.

My original post specifically indicated that I was an investor with a number of loans on fourplexes, etc.  At the end, I made it very clear that this 11th loan would be for a new primary residence -- owner occupied:

> This would be for a new primary residence for me -- owner occupied, of course.
>
> It was my understanding, from others, that the 10 loan limit only applies if the property is an investment property
> rather than an owner occupied property.

Quote from @Melissa Nash:

Quote from @Wayne Brooks:

Quote from @Melissa Nash:

10 conventional loans per person. No exceptions and includes your primary. The best trick is to get NON conventional loans when rates are lower, and Conventional loans when rates go up. When/If rates drop- do a refi into non conv loans to open up spots. If you are married, your spouse can get 10 in their name too! 

Forgetting about the personal residence issue…the “10 loan limit” is not “10 conventional loans”….it is “10 mortgages properties”, regardless of type of loan. 

I think there is come confusion..... you are allowed 10 conventional (Freddie/Fannie) loans. Non conventional loans have no limit. I personally have well over 10 loans as do most investors. I have a client that is at 85 loans right now,  But the "golden ticket" is 10 conventional loans per person. That is it. The reason people want these is because the rates are lowest, easy to get with a good credit score, and best terms. 

This is incorrect.  You can get as many Freddie/Fannie conforming loans as long as you want to owner occupy the property for loans 11, 12, etc.  You can NOT get an 11th investment (non-owner occupied) loan if you already have 10.  Please see the table at the top of the page for the link provided by @Jay Hurst

https://selling-guide.fanniemae.com/Selling-Guide/Originatio...

@James Hamling,

Thanks for providing an excellent definition of a portfolio lender for those reading.  This would have been exactly how I would have defined it as well.

At this point in my investing journey, I have never needed / seen the point to deal with a portfolio lender, especially since I was able to get conforming loans for all my fourplexes as they were purchased in the $800k to $1.1M range, so easily stayed under the limits and I could get Freddie/Fannie money for 2.5% to 3%.  When I did speak with a local portfolio lender, they wanted at least 4.5% to lend.  They wanted me to "refinance" my portfolio, or some part of that portfolio into that higher rate with a shorter amortization schedule (25 years).  That did not make financial sense.

Since this purchase is for a primary residence, there is no need for me to seek a portfolio or commercial loan, so I shopped around with multiple mortgage brokers in my network and provided a bit of education to the one who was providing the best quotes.

I have three fourplexes being built and for those I will get commercial loans with local banks. My current main bank isn't thrilled with financing out of state, but will probably do it because of our existing relationship. They will keep the loans and won't be looking to resell them. Technically the loans will probably be DSCR loans for two of them and since I'm partnering with a buddy on one of the three, he will get Freddie/Fannie money.

Still, I'd LOVE to have a referral, for a portfolio lender, who can do better than what I'm getting quoted from Chase and Key Bank.

Last time I looked at the rates from "portfolio lenders", the rates were multiple percentage points (2-3%) higher than I could get from Freddie/Fannie or Jumbo lenders.

Do you have a few portfolio lenders that will lend on a $1.5 M primary residence for better than 7.375 at par with a 30 year fixed amortization?

Two say 10 is the max and three say there is not max, because it is owner occupied, which was my understanding.  Thanks, @Jay Hurst for providing the citation.

This won't really apply since I will most likely get a jumbo loan, so conforming rules won't apply.

I have 10 existing loans with only one being a Jumbo on my current primary residence. The others are on investment properties (6 fourplexes, one duplex, a single family rental and a STR vacation property).

In speaking with a new, to me, mortgage broker, he was concerned that I could not get a conforming loan because of the existing 10 loans I already have even if I decided to put over 50% down to get under the 726.2k limit.  This would be for a new primary residence for me -- owner occupied, of course.

It was my understanding, from others, that the 10 loan limit only applies if the property is an investment property rather than an owner occupied property.

Please help me understand the rules.  Thanks!

I echo what @Leo R. has suggested.  The next property, if you occupy it, will require a lower down payment than a non-owner occupied property.

I don't actually have much experience with that model after my first house since I've always had the down payment cash needed to purchase both my primary residences and my investment properties, so I've always gone with a large enough down payment to get the better rate on the loans.

Many programs will let you get 3.5% to 5% down and if you feel comfortable enough renting out rooms or a basement or whatever, you can hack your payment to be lower by the rents you collent.

In my case, SWMBO is not OK with me renting out rooms, etc., so I can't house hack.

They have decided not to buy after all.

My daughter and son-in-law have found a mobile home / double-wide trailer near his college and would like to buy it.  They had been looking at a duplex to house hack, but it is WAY more expensive and needs WAY much more work and is also further from school, so the mobile home is more attractive to them.  No offer has been made and they have only just now seen it because it was an "Open House" as we drove by.

How does one get financing for one of these?