Victoria K. DeBray
Per Fannie Mae's Announcement 09-02 on 2/6/09, effective March 1st of 2009, real estate investors can once again own and finance up to 10 individual properties; however, there are some new requirements. Homeowners buying above their 4th property must meet the following criteria:
720 credit mid-score
25% downpayment for a 1-unit & 30% for a 2-4 unit property
No mortgage delinquencies on any properties in the last 12 months
Effective 6/1/09: 6 months of reserves for each investment property
Not all lenders are selecting to offer these loans and you should expect pricing overlays for this option.
Rob's comment below about reviewing available equity in existing properties is a good strategy to explore.
By the way, I also offer FREE Property Management software on my website:
It can still be difficult to finance more than four properties conventionally, and as Dan states below. I encourage you to run your complete situation by a home finance professional that you trust.
When I am faced with scenarios like yours, I do my best to see if there's a way to cost-effectively consolidate the financing that already exists BEFORE working on the purchase of the new property. So many times, I find that by refinancing one or more of the existing properties and getting cash out, the client is then able to buy the new property "all cash," and also get better terms on all of the financing that will remain.
You would be surprised to know how often the solution is available with the resources that already exist, but that might not be considered.
If I can be of service, don't hesitate to get in touch.
Most lenders will only do 4, but there are some exceptions. If its a primary house your financing, it doesn't really matter how many you own, as long as you qualify income wise. If your looking to finance an investment property or second home, the amount of equity will come into play.
I would be happ yto work up some numbers for you to see what you are qualifed for, what type of rates are available to you. If interested, please email me at firstname.lastname@example.org.
800-795-9633 x 185