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NewKidInTown3

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Posted: 13:48 on 08-28-2008

Only one has a four financed property limit. The other still has a ten property limit.

Some lenders, such as Countrywide, are still following the more generous 10 property rule. You can also use mortgage lenders that make portfolio (non-conforming) loans.

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ceinvests

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Posted: 15:52 on 08-31-2008

Why does Countrywide tell me that it has a 4 property rule? And is it properties, properties w/first mortgages, OR mortgages?

Clarity always appreciated.

Ce

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NewKidInTown3

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Posted: 23:49 on 09-02-2008

CountryWide has always had a four loan rule

Countrywide will give an individual up to four mortgages. If you already have four mortage loans from CountryWide, you will have to go to another lender for your fifth mortgage loan..

Fannie Mae's four financed property rule limits the borrower to four financed properties (from all lenders) including a primary residence. If you already have four financed properties, you can not get your fifth loan from a lender that sells to Fannie Mae.

Before they were acquired by Bank of America on July 1 of this year, CountryWide would give a borrower his tenth morgage loan as long as no more than four of those loans were CountryWide loans. Now that CountryWide is under new management, we may see some changes to their underwriting rules in the near future

[ Edited by NewKidInTown3 on Date 09/02/2008 ]

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ceinvests

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Posted: 10:18 on 09-06-2008

Thank you for the clarification, New Kid.
Ce

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smithj2

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Posted: 21:15 on 09-12-2008

Anyone know any banks that lend past the 10 loan limit? It is becoming a real hassle to find financing now that we have passed the 10 loan limit.

Everyone seems to have dried up on financing, even the portfolio lenders.

Thanks.
JS

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stamba

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Posted: 13:07 on 10-05-2008

As of Dec 1 2008 Fannie will only allow 4 mortgage to any 1 person. I don't know if this includes your primary mortgage or not. Real sledgehammer ruling to investors.

I have no idea how to get around this one?

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lacashman

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Posted: 17:20 on 10-05-2008

Quote:

On 2008-09-12 21:15, smithj2 wrote:
Anyone know any banks that lend past the 10 loan limit? It is becoming a real hassle to find financing now that we have passed the 10 loan limit.

Everyone seems to have dried up on financing, even the portfolio lenders.

Thanks.
JS

WaMu used to have no limit on how many you could have. Yes, they dried up.

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dogrunslow

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Posted: 14:14 on 10-06-2008

Yes, there is a 4 loan cap. The only way around it is to put the existing loans into a "corporation" and then the loans will not be counted against you when you apply for another. I don't know if this loophole allows for the same treatment with an " LLC" or not. That is my remaining question.

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smitnlit

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Posted: 14:41 on 10-06-2008

That was my thought. Put it in an LLC and set up an LLC for each property, but can you get a residential loan with an LLC or does it automatically have to be a commercial loan?

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NewKidInTown3

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Posted: 15:13 on 10-06-2008

Quote:

On 2008-10-06 14:14, dogrunslow wrote:
Yes, there is a 4 loan cap. The only way around it is to put the existing loans into a "corporation" and then the loans will not be counted against you when you apply for another.

Won't work. The loans were issued to the investor personally. The loans will still appear on the investor's credit report. Moving the property into a business entity after purchase does not make the loans invisible to Fannie Mae.

Purchasing the property in a corporate name using commercial financing from the start will make the loans invisible to Fannie Mae.

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Posted: 15:17 on 10-06-2008

Quote:

On 2008-09-02 23:49, NewKidInTown3 wrote:

Before they were acquired by Bank of America on July 1 of this year, CountryWide would give a borrower his tenth morgage loan as long as no more than four of those loans were CountryWide loans. Now that CountryWide is under new management, we may see some changes to their underwriting rules in the near future

I have been informed that CountryWide is now implementing the Fannie Mae 4 property rule. If you already have four financed properties, including your primary residence, CountryWide will not give you a fifth loan. Does not matter if none of your loans are with CountryWide.

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smitnlit

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Posted: 11:19 on 10-21-2008

New Kid

"Purchasing the property in a corporate name using commercial financing from the start will make the loans invisible to Fannie Mae. "

Can you purchase a home with an LLC and still residentially finance it if it's 4 units or under??

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ghathcox

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Posted: 11:27 on 12-14-2008

Good questions...I'm facing the same issues. I guess I will have to talk to a Mortgage Specialist to ask them how to get around the 4mortgage rule. My guess is that you will have to use a commerical loan, but I'm not exactly sure how a commerical loan is different from a traditional mortgage.

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cjmazur

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Posted: 18:01 on 12-14-2008

Yes. I did it with a duplex and then the mtg broker screwed me.

There are 2 lenders that I know of out there (Thornburg used to be cheap now like >10%, and Luxury Mortgage Corp which I haven't shopped recently) will allow vesting in the name of a trust or llc.

Luxury had a high loan minimum like 400k+, but would allow cross-colateralization or blanket mortgage.

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