There are some mortgage agencies, like Fannie Mae, that will not do a loan for an investment property buyer that already has what they consider to be excessive financed properties.
If you are buying a new primary residence, there is no limit to the number of financed properties that you already have.
However, if you are buying a second home/vacation home or rental property, you cannot have more than 10 financed properties already.
The overall mandate for an agency like Fannie Mae is to increase homeownership, not to necessarily finance landlords who dream of having dozens of rental properties and want to finance each of them. So, they have a limit, and right now that limit is no more than 10 financed properties.
If you have 10 financed properties and are trying to buy an 11th financed investment property, you would not be able to get a Fannie Mae loan.
If you have 9 financed properties and are trying to buy a 10th financed investment property, you would be able to get a Fannie Mae loan.
If you owned 85 rental properties free and clear, and are buying your first financed investment property, you would be able to get a Fannie Mae loan.
If you own 14 financed rental properties and are buying a primary residence, you would be able to get a Fannie Mae loan.
Mortgage guidelines have the ability to change at any time, so always talk to a well-reviewed mortgage loan officer to make sure you understand the current guidelines and how they might apply to you.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
