If the funds are in your brother's account for more than 60 days then Fannie Mae and Freddie Mac don't care. 

If to Fannie Mae underwriting, you just need a 1003 and supporting documents.

Is it possible that the Fannie Mae will lift the 10 loan limit in the future?

Loans that are guaranteed by the Veteran Affairs (VA), much like FHA loans, are backed by the federal government (Ginnie Mae).

Not a disaster, but I once put down the entire purchase price in EM ($50K) for a Fannie Mae REO.

Thanks in advance Fannie Mae has no limited to primary residences so perhaps that particular bank has an overlay to not accept residential loans when you have more than X financed properties or some other restriction.The question would be what did the bank/lender tell you?

Can a Buyer have more than one active submitted offers on more than one property at the same time?

Tenants in place are currently paying $1400/ mo.If I bought it cash and refi'd out immediately with a delayed refinance Fanny Mae product for 75% (of 125k) that would be a 93,750.00 cash back.

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.

Hi Sheila,Conventional 97 is only for single unit dwellings per Fannie Mae. https://www.fanniemae.com/content/faq/97-ltv-options-faqs.pdf.