How many properties can someone finance?

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Mortgage and Lending with Caliber Home Loans, Inc. NMLS 15622 nmls#91296 Caliber #15622

How many properties can someone finance? 

The answer depends on the lender you may wish to use.  The average mortgage lender will do up to 4 properties including the buyers primary residence.

However, there are many institutions that will finance up to 10 residential properties.

In addition, there are some underwriting guidelines that must be followed to be considered for approval.  They are:

Credit score must be 720 or greater.

Properties must be 1-4 unit homes and be in good condition and

6 months principal, interest, taxes and insurances must be in reserve by the time of underwriting for each property owned.   

Ineligible properties are:

modular or manufactured homes

houseboats, coops and geodesic properties

working farms or commercial properties and

FNMA/FHLMC ineligible condos. 

If you currently own a home as a primary residence and 3 investment properties you can still finance some additional properties as long as you follow the guidelines above.  Please keep in mind that all other general underwriting guidelines are also in effect.

 

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Anonymous
Randy Mitchelson

Are there some lenders you know of that specialize in loan programs for people with high number of properties? I have a client in Florida with 10+ properties, and he is cash flowing all of them and wanting to grow his portfolio. What options might he have?

Aug 24, 2013 02:08 AM #1
Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

All this is true but dont forget that the 6mos reserves is for ALL properties owned not just the one they are trying to buy or refinance!

Aug 24, 2013 02:09 AM #2
Rainmaker
856,247
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Thank you for the information.  It is helpful as we help our investors.

Aug 24, 2013 02:11 AM #3
Rainer
27,272
Thomas Turner
Caliber Home Loans, Inc. NMLS 15622 - Shelton, CT
Tom Turner

Elite Homes,  Thank you for your comment.

 

David,  Thanks for adding that the reserves are required for all the properties.

 

Randy, Unfortunately I am in Connecticut and that is the max I am aware of, however your client might be able to develop a banker relationship with whom he banks with.  There are banks that would treat him as a commercial client and maybe allow him to wrap all the loans into one package at today's rates and maybe increase his cash to buy more properties through them.  Thanks for reading my post. 

Aug 24, 2013 02:52 AM #4
Rainmaker
845,449
Barbara Altieri
Kinard Realty Group Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Tom:  Very interesting information as four is not necessarily the limit. Just curious -- why are geodesic props excluded?

Aug 24, 2013 11:52 AM #5
Rainer
27,272
Thomas Turner
Caliber Home Loans, Inc. NMLS 15622 - Shelton, CT
Tom Turner

Hi Barbara, The primary reason geodesics are excluded is overall marketablity.  It's difficult to determine value due to uniqueness andlack of other sales.  Thanks for the question.   

Aug 25, 2013 05:12 AM #6
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Rainer
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