There will be three main factors a lender will look for:
1) What is your history of managing rental properties, or how long have you been a landlord?
2) Are all your loans currently held by the same lender?
3) What is your Debt-to-Income ratio?
Lenders will be able to determine your eligibility with these facts. A two year history of being a landlord will allow for Conforming products, which come at better rates, and more lenders are willing to offer this product. Most lenders have a limit of how many loans they will hold for an individual, but are not concerned with how many total rental properties the borrower has -- so long as they are within Fannie Mae guidelines (currently 10 investment properties) and you've made your payment on time. The number of loans one lender will hold varies depending on the lender, but if youâ€™re capped at one you can get an offer from another. That's why it's smart to work with a good mortgage broker as they have relationships with multiple lenders and can find you the deal best suited to your needs.
Give me a call at 720.280.0441, and I'll be happy to get you pre-approved for a 4th property today.
Highlands Ranch Mortgage Broker