You may have heard a rumor that banks can only give you 4 (four) fixed rate mortgages. That’s false. You can actually get 5-10. First, avoid getting trapped into an adjustable rate mortgage with a portfolio product. It’s probably better to get a low fixed rate mortgage through Fannie Mae.
Is there a catch?
- You’ve got to have a 720 FICO or better.
- You’ve got to have 6 months cash reserves for all the properties.
- It’s a bit more strict on the bank end credit; no bankruptcies, no closures, anything that’ll give Fannie Mae nervous.
What’s NOT included in the 5-10 property count?
If you had vacant lots, commercial property, multifamily 4+ unites, or time-share, these are not included in the count.
What’s the loan of value you can borrow against?
- If it’s a single family or condo on a purchase, it’s 75%, which is the same as normal – and on a 2-4 family property, 70%.
- If you’re looking for cash out (to take cash out of the loan), it’s maximum 70% cash out for single-family and 65% for a 2-4 unit multi-family property.