How Many Mortgage Loans Can One Person Have?

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How many mortgages can one person have?


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There is no limit to the number of mortgages you can have, it is not illegal to have too many mortgages. You may feel this way because I think you are asking “ How many mortgages can I have and still qualify for a loan?” And “not a hard money or private loan?” Well I’ll answer this here:

It varies depending on the loan program. It used to be 8 mortgages or less prior to the credit meltdown. Currently on *most loans it is at 4 mortgages or less, in order to be eligible to qualify for the best rate with the least down as an investor.

There is no limit on most private mortgages and hard money loans but you pay for that luxury by getting a higher rate and fees.

I’m also assuming, based on your question, that you are an investor. Depending on the type of transactions you are doing, the private money source may not be a bad way to go if it helps you make money you could not make otherwise.

I could go into great detail regarding the many other possible alternatives to this problem, but I think that answers the question you were asking.

Answered over 5 years ago
John Cramer
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In theory you can have as many as your income can sustain.  Meaning that your Primary residence; can be financed upwards to 97% LTV

But all other properties(unless considered a 2nd home) investment/rental must have a minimum 25% downpayment.

Your income must also support at least a 45% DTI(debt to income)before tax.

It does vary lender to lender whether or not you can count rent being paid as income in the DTI ratio; most will not.

Chances are if you make enough money to qualify to have multiple properties with mortgages then you would not need a lender to back you and just own the properties out right.

The only example I have seen of someone using this tactic was a investor in a college town who only needed to hold the properties for a year and was flipping them but it was a 5 property deal; I hope this helps.

Answered about 5 years ago
Anonymous

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There is no limit to the number of mortgages one person can have. There are limitations on the number of mortgages some companies will own or buy on the secondary market from one person.

A large portion of loans are given based on whether or not the original lender will be able to sell the loan.When loans are sold that frees up the lender’s money to make more loans. This is the basis of our current mortgage industry. The largest buyers of loans in the secondary market are Fannie Mae and Freddie Mack. They have criteria for loan that they will purchase. Fannie Mae limits the number of total mortgages to between 5 and 10 as long as you fit there criteria.

Some of Fannie Mae’s guidelines are as follows:

70% loan to value, 720 credit score Underwriting and Delivery Requirements

  • The borrower cannot have any history of bankruptcy or foreclosure within the past seven years.

  • The borrower cannot have any delinquencies (30-day or greater) within the past 12 months on any mortgage loans.

  • Rental income on the subject investment property must be fully documented according to the Selling Guide, Part X, 402.24: Rental Income. Rental income from other properties owned by the borrower must be supported by two years’ federal income tax returns. DU messages permitting reduced rental income documentation must be disregarded and full documentation must be obtained.

  • The borrower must complete and sign Form 4506 Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return granting the lender permission to request copies of federal income tax returns directly from the IRS. The lender must obtain the IRS copies of the returns or the transcript and validate the accuracy of the tax returns provided by the borrower prior to the loan closing.

  • The borrower must have reserves for the subject property and for other properties currently owned by the borrower (i.e., other financed second home and investment properties) in accordance with the following section – “Reserve Requirements for Second Homes, Investment Properties, and Multiple Financed Properties.”

  • Lenders must use Special Feature Code 150 when delivering mortgage loans secured by second home and investment properties that meet the five to ten financed property  requirements

  • The borrower cannot have any history of bankruptcy or foreclosure within the past seven years.

  • The borrower cannot have any delinquencies (30-day or greater) within the past 12 months on any mortgage loans.

  • Rental income on the subject investment property must be fully documented according to the Selling Guide, Part X, 402.24: Rental Income. Rental income from other properties owned by the borrower must be supported by two years’ federal income tax returns. DU messages permitting reduced rental income documentation must be disregarded and full documentation must be obtained.

  • The borrower must complete and sign Form 4506 Request for Copy of Tax Return or 4506-T Request for Transcript of Tax Return granting the lender permission to request copies of federal income tax returns directly from the IRS. The lender must obtain the IRS copies of the returns or the transcript and validate the accuracy of the tax returns provided by the borrower prior to the loan closing.

  • The borrower must have reserves for the subject property and for other properties currently owned by the borrower (i.e., other financed second home and investment properties) in accordance with the following section – “Reserve Requirements for Second Homes, Investment Properties, and Multiple Financed Properties.”

  • Lenders must use Special Feature Code 150 when delivering mortgage loans secured by second home and investment properties that meet the five to ten financed property  requirements

When someone has the most mortgages allowed they typically start to look for hard money, hard money is normally charged a higher interest rate with a shorter term and based on the value of the property not the down payment.

Answered about 5 years ago

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As many as their income and assets can afford. Personally, I have 4 right now. Your plan is certainly possible, as long as you can afford each and every mortgage without needing support from renters, flipping os short term cash loans. However, an individual lender would not allow you to have more than 4 mortgages simultaneously. But if you are dealing with many lenders, there is no such limit as to how many mortgages you can have. Nevertheless, it will not be easy for you to get mortgage for your fifth property if you want to go for conventional loans

Answered over 2 years ago

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Well there doesn’t seem to be any limit for the number of mortgage loans one person can have, as it totally depends on the score and the management skill of making payments against the loans. Generally mortgage loans are quite big conversely it’s quite impossible to go for more loans. Fast Pay Day Loans

Answered about 1 year ago

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