Fannie & Freddie New Underwriting Rules
I recently ran into obstacles obtaining financing for 18 deals. From what I understand, the new rules are this, for conventional residential loans an individual can only have 10 mortgages in his/her name.
How can I get around this other than using another person to originate the loans?
thanks for your help,
Colin
Do you mean hard money lenders? If so, at rates of 15%, that is not a viable alternative for holding properties. If I were flipping them it would be a different story.
Not hard money; there are many lenders that will allow up to 20 mortgaged properties. Some have no limitation. You just need a broker who works with lenders that have a conduit for loans besides Freddie Mac and Fannie Mae. Some lenders hold the loans themselves in their "portfolio". 75% of the loans I do are of this type. Hope this helps.
-Jim
If it's an issue, find a better mortgage broker that can break the number of loans different lenders. As far as I know, you're not limited to the number of mortgages, but by the individual lender's dollar amount. As in, one lender might be only willing to only loan 1.35 million, and another might cut you off at 1 million.
There are many lenders that have rates comparable to fannie mae/freddie mac. Any local bank will give you a loan on a house. If you qualify for fannie or freddie you would qualify for a local lender.
Lori
[addsig]
Jim,
Can you list any national lenders who write loans other than Freddie/Fannie.
I know Wamu does freddie/fannie but they also have their own portfolio product (however not fixed 5-1 ARM).
Others such as: M&T Bank, HSBC, Wells Fargo only write freddie/fannie loans.
Thanks,
Colin