Alan Edwards, Home Buyer in Rio Linda, CA

How does an investor get reasonable financing with Fannie Mae setting a limit of 3 investor loans? alan

Asked by Alan Edwards, Rio Linda, CA Thu Jan 22, 2009

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Dear Mr. Edwards: That is a very, very good question. I think it's the best one I've ever seen on Trulia. Good for you.

The last I heard it was four "conventional" investor loans. The key word here is "conventional." Don't forget about alternative financing methods. There are too many methods here to mention, but just to list some, seller financing, hard money loan, and the list goes on.

Also, I have experienced that some portfolio lenders, lenders loaning money not conforming to Fannie Mae or Freddie Mac guidelines don't have to participate in the maximum four loan rule. You're probably counting your primary residence home loan for the 3 investor loans you mention in your question.

If you have (or set up) a self-directed IRA or 401-k, there is no limit to the number of loans you can get to purchase real estate held by your IRA and protected from "creditors" and from "capital gains taxes." For information on that, Google Entrust or Pensco.

You just have to "think outside of the box" in times like this.

Erin Phillips
Keller Williams Realty
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1 vote Thank Flag Link Fri Jan 23, 2009
Hello Alan,
We have two sources within California offering loans for investors with more then 4 properties. Please email for details. Good credit scores and verification of down payments funds required.
0 votes Thank Flag Link Mon Jan 26, 2009
Mr. Edwards - Please send me an email at I can give you more of a detail answer with a copy from different lenders underwriters stating how many properties you can have as an investor. Thanks Tony at
0 votes Thank Flag Link Fri Jan 23, 2009
I thought the limit was currently 4 but you could be right. I'd suggest you call a reputable lender like Mark Holmes at Amer. Pacific Mortgage 916 837-4360 I know the interest rates are attractively low for non owner occupied homes as well but require 15-20% down.

Changes are coming in February to all of this so it's best to talk to a lender.
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0 votes Thank Flag Link Thu Jan 22, 2009
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