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How to get more than 10 mortgages on investment properties?
By Tom | June 10, 2007
M5 asked:
We own 10 investments properties and have 10 mortgages (with Bank of America) on each one. The bank is saying that they can do only 10 mortgages per person. How or where can we go over that limit, with reasonable rates and closing cost.
Thanks for looking.
Ronnie
Topics: investment properties | 4 Comments »
June 13th, 2007 at 1:47 pm
That’s about the max I’ve found as well. Most lenders seem to be limiting investors to having 10 mortgages. Perhaps, if you began owning these properties under and LLC or S-Corp it would be possible to find lenders willing to grant more mortgages to a company rather than an individual.
June 15th, 2007 at 7:05 am
lepr0kan
said it best. You should thank about putting 2 properties per LLC. Protect your self and the other properties from law suit and or other problems.
June 17th, 2007 at 10:53 pm
You can still find a few conforming lenders willing to exceed the 10 property max. It’s only going to be lenders willing to hold onto the mortgages as opposed to sell them to Fannie Mae so they’re few and far between. You have really 3 options.
1. Look into purchasing in the name of an LLC or escorp or some such. Obviously this would be a commercial deal and they’d start looking at things like DCSR of the property so it may not be the way to go.
2. Look around and find a reputable mortgage broker who does this type of business. Ask them upfront if they have lenders that deal with more than 10 mortgages and compare a few offers.
3. Look into restructuring the mortgages. Depending on your equity situation you may be able to use some of the properties to pay off some of the other mortgage in full. This is typically the most expensive option as every mortgage you refinance to juggle equity has closing costs.
It can be done, for this type of loan I’d suggest looking at brokers as they tend to have more programs than any single bank. Even a big bank like BOA only offers a fraction of mortgage products available.
June 19th, 2007 at 12:34 am
the “10 max” guideline is for Fannie Mae and Freddie Mac backed loans. try checking with a mortgage broker that may have access to private investors who can/will finance above and beyond 10.