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Jennifer, Home Buyer in San Mateo County, CA

Is it possible to get 2 homes rolled into one loan for a purchase?

Asked by Jennifer, San Mateo County, CA Fri Apr 10, 2009

I am looking to purchase two modestly priced homes in Tennessee which total only 110K. Does anyone know a loan program which will allow me to do this? Any ideas on how I could do it?

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Yes, that's possible. A way to do it is to get a blanket mortgage with a partial release schedule. This way you can purchase multiple properties with a single mortgage, be able to sell each property one-at-a-time, and reduce the size of your payment as you sell off your properties from under the blanket.
0 votes Thank Flag Link Fri Apr 10, 2009
Sure you can purchase with a "block" loan. Several years back, I personally bought 7 houses with one mortgage. As I sold the houses - one by one, I would pay off the purchase price of that house (it was broken down + I knew the amounts for each house). My note however, did not reduce with each sell - I made the same payment each month. As I sold and closed on the individual houses, I would get the profit of the sale as I went. In other words, my block loan was $220k for 7 houses, when I sold a house that I paid $50k for $80k, I would get a $30k (minus closing cost). Some loans, you only get the profits at the tail end. Make sure you understand that on the front end. In my case, it took 7 months to sell all of them. I don't recommend buying that many at one time - EVER!

The rules have changed though for investment property and in most cases an individual can only have a total of 5 properties financed at one time. With this only being 2, you should not have any problem. You will have to do this as investment property, since you can't occupy 2 houses as a primary residence - if you want to roll these together and have at least 10% down (maybe 15% depending on your scores).

The good news......only one closing.
0 votes Thank Flag Link Fri Apr 10, 2009
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