Multiple Mortgages

According to Fannie Mae and Freddie Mac rules, you are maxed at 4 financed properties. If you own a fifth, you will not get financing from a Fannie Mae and Freddie Mac direct seller. That does not mean you cannot get financing for a fifth, or additional property. What it means, is that you have to find a lender that offers portfolio products. Portfolio products are loans that they lend their own money on, and possibly also service. Since the bank is lending their own money, they can be a little more flexible on the guidelines when it comes to the number of maximum properties.

Lenders with portfolio products may offer rates a little higher, and different adjustments and hits to the rate, based on LTV, FICO and terms, just like Fannie and Freddie.

Also, on cash out refis, the owner must have owned the home for at least 6 months.
Please check with you loan officer about the properties with high loan-to-values and secondary financing. There are tighter restrictions on them, and therefore, Freddie and Fannie may not be an option, in those situations.

Another point to keep in mind, it applies to 4 properties, NOT 4 mortgages. If you own 4 properties, 1 primary residence and 3 investments, and each home has 2 mortgages, that will still be considered having 4 financed properties.

Sr. Mortgage Broker
Fairfax, VA Homes