Multiple Mortgages for the Same Borrower - Fannie Mae Conventional Guidelines

Fannie Mae has clarified it's policy relating to multiple mortgages for the same borrower.  In the Fannie Mae Selling Guide announcement states that the following guidelines must be followed:

The financed property limit applies to any combination of ownership in one- to four-unit properties and is cumulative for all borrowers.  These limitations apply to the total number of properties financed, not just the number of mortgages sold to Fannie Mae.

Example: If the borrower owns two properties and the co-borrower owns three other properties, then the financed property limitation applies.  (The total properties owned in this example is 5.)

The calculation applies to all borrowers and co-borrowers, regardless of relationship.  In addition, properties held in a partnership or through a limited liability corporation (LLC), or an S-Corp where the borrower is personally liable on the Note must be included in the calculation of the number of financed properties owned.

Loans that do not meet Fannie Mae's eligibility requirements for the maximum number of financed properties owned may not be approved.