Can't get a mortgage if you have 4 pieces of property financed???

newmann
Posts
24442
Joined
4/1/2008
Location
US
Edited Date/Time 1/27/2012 3:34am
Bank says you can't get a standard home loan if you have four or more pieces of property financed in your name. Doesn't matter your income or what you own. We were even buying down to a 2.75% rate for 15 yrs. but got booted. Now they want it financed in house at 5.83% with an escrow attached. Sucks for all of us who actually make an effort to pay our bills. Meanwhile, the foreclosures just keep stacking up. Who dreams this shit up???
|
flarider
Posts
25497
Joined
4/1/2008
Location
Daytona Beach, FL US
12/29/2011 6:56am
Is this EVERY bank and EVERY mortgage company policy?
Is this some law?
jmar
Posts
14158
Joined
2/11/2007
Location
Oklahoma City, OK US
12/29/2011 7:04am
Sounds like you need a few LLCs.
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 7:07am
flarider wrote:
Is this EVERY bank and EVERY mortgage company policy?
Is this some law?
Don't know. Bank was shopping my loan to get my rate. Fannie / Freddy from what I'm gathering so far. Closing is already scheduled and insurance is already in my name and ready to go. Utilities already notified and scheduled and survey has been paid for. Not to happy as they should have seen this coming. It's a second home but from what I'm getting out of it it would apply if I sold my primary residence to buy another house.
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 7:09am Edited Date/Time 12/29/2011 7:10am
jmar wrote:
Sounds like you need a few LLCs.
Got a S-Corp., LLC and an LLP already. What the hell else should a person need? Your name is still going to show on a credit report isn't it?

The Shop

vet323
Posts
3184
Joined
7/31/2010
Location
Lead, SD US
12/29/2011 7:22am
Joe, they are being straight with you. Prior to the '08 meltdown, most banks would go 6-8 properties, but now 4 is usually the limit. The rate they are offering to you for an in-house loan isn't as high as some others I've seen (it is a little high considering your history, maybe). The only other alternative is to use a private lender, but those rates will be really high and for a much lower period. Maybe you could ask your bank if you can buy a point back from them if you have money available to do that.
fcr
Posts
9348
Joined
12/1/2006
Location
Monkeys Eyebrow YE
12/29/2011 7:42am
Yep we went through that also, we can't redo any loans either with bad interest rates vs what's available today.
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 10:24am
fcr wrote:
Yep we went through that also, we can't redo any loans either with bad interest rates vs what's available today.
I've refinanced a few things lately to take advantage of lower interest rates but we are talking about dropping some commercial 7.25% and 8.25% loans down to the 5 1/2- 5 3/4% range. Paid a bunch of things off and combined others to put myself in a better position.

Just one more benefit of trying to get ahead in this country I guess. Where is the soup nazi? No low rate for you!!!Smile
Titan1
Posts
8990
Joined
2/3/2010
Location
Lehi, UT US
12/29/2011 10:44am Edited Date/Time 12/29/2011 10:46am
newmann wrote:
Bank says you can't get a standard home loan if you have four or more pieces of property financed in your name. Doesn't matter your income...
Bank says you can't get a standard home loan if you have four or more pieces of property financed in your name. Doesn't matter your income or what you own. We were even buying down to a 2.75% rate for 15 yrs. but got booted. Now they want it financed in house at 5.83% with an escrow attached. Sucks for all of us who actually make an effort to pay our bills. Meanwhile, the foreclosures just keep stacking up. Who dreams this shit up???
Are you trying to purchase/refinance a primary residence? IF you are, then there are options available, at much lower rates than 5.8%.

If you are trying to purchase/refinance an investment property...then you are stuck.

Banks won't do investment loans to people with more than four financed properties (apparently that's to risky), but they will do primary residence loans to people with more than 4 financed properties (up to 10 properties).
Titan1
Posts
8990
Joined
2/3/2010
Location
Lehi, UT US
12/29/2011 10:45am
jmar wrote:
Sounds like you need a few LLCs.
newmann wrote:
Got a S-Corp., LLC and an LLP already. What the hell else should a person need? Your name is still going to show on a credit...
Got a S-Corp., LLC and an LLP already. What the hell else should a person need? Your name is still going to show on a credit report isn't it?
Yup. That is correct. Doesn't matter what is on title, if the mortgage is in your personal name, you're going to have a difficult time.
Rooster
Posts
4432
Joined
4/1/2008
Location
Edmonton CA
12/29/2011 10:58am
The banks have all their capital tied up in derivatives and foreign bonds. Your mortgage paper isn't strong enough to stand on their balance sheet to use as equity and borrow more against.

Sure they could make money off selling you another mortgage, but not as much as they make selling off the paper and investing it in derivatives. They only want loans they can sell off these days.

They're more interested in gambling than loaning out money for profit.
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 11:36am
newmann wrote:
Bank says you can't get a standard home loan if you have four or more pieces of property financed in your name. Doesn't matter your income...
Bank says you can't get a standard home loan if you have four or more pieces of property financed in your name. Doesn't matter your income or what you own. We were even buying down to a 2.75% rate for 15 yrs. but got booted. Now they want it financed in house at 5.83% with an escrow attached. Sucks for all of us who actually make an effort to pay our bills. Meanwhile, the foreclosures just keep stacking up. Who dreams this shit up???
Titan1 wrote:
Are you trying to purchase/refinance a primary residence? IF you are, then there are options available, at much lower rates than 5.8%. If you are trying...
Are you trying to purchase/refinance a primary residence? IF you are, then there are options available, at much lower rates than 5.8%.

If you are trying to purchase/refinance an investment property...then you are stuck.

Banks won't do investment loans to people with more than four financed properties (apparently that's to risky), but they will do primary residence loans to people with more than 4 financed properties (up to 10 properties).
I'm getting the opposite of what you are describing. My primary residence is paid for. This is a second home(beach house) that we are buying. Wanting it as a regular mortgage with a lower rate rather that a nearly 6% in house or commercial rate. I don't have any problems with commercial or investment loans, they love me there. And I've had over a dozen properties financed at one time with no real hiccups.
Tracktor
Posts
2345
Joined
8/17/2006
Location
The RTF/Amboy, WA US
12/29/2011 12:06pm
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a primary residence. Fannie Mae has a 10 property limit unless the mortgage is on a primary residence. I do 4+ property loans every once in awhile. However, even with Fannie Mae the guidelines are tighter when you own more than 4 properties…………..Or, do a “Cash-out” refinance on your primary and buy the second home with the proceeds……
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 12:59pm
Tracktor wrote:
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a...
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a primary residence. Fannie Mae has a 10 property limit unless the mortgage is on a primary residence. I do 4+ property loans every once in awhile. However, even with Fannie Mae the guidelines are tighter when you own more than 4 properties…………..Or, do a “Cash-out” refinance on your primary and buy the second home with the proceeds……
I'm getting info on that too that there were laws that changed as recently as three months ago regarding the ten property limit. The refi of our primary residence is being discussed right now but not sure where it will end up. Freaking amazing, the cluster that is our banking system. Too far into the purchase to really back out and go do a bunch of shopping.
Titan1
Posts
8990
Joined
2/3/2010
Location
Lehi, UT US
12/29/2011 1:26pm
Tracktor wrote:
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a...
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a primary residence. Fannie Mae has a 10 property limit unless the mortgage is on a primary residence. I do 4+ property loans every once in awhile. However, even with Fannie Mae the guidelines are tighter when you own more than 4 properties…………..Or, do a “Cash-out” refinance on your primary and buy the second home with the proceeds……
newmann wrote:
I'm getting info on that too that there were laws that changed as recently as three months ago regarding the ten property limit. The refi of...
I'm getting info on that too that there were laws that changed as recently as three months ago regarding the ten property limit. The refi of our primary residence is being discussed right now but not sure where it will end up. Freaking amazing, the cluster that is our banking system. Too far into the purchase to really back out and go do a bunch of shopping.
How many properties do you have financed, currently?

If it's less than 10, you shouldn't have any trouble at all with your primary residence.
Tracktor
Posts
2345
Joined
8/17/2006
Location
The RTF/Amboy, WA US
12/29/2011 2:35pm
Again, find another banker that knows how to read Fannie Mae’s selling guide. Anything other that the below guideline is a lender specific “overlay”. The following is from the latest guide dated 12/20/2011. Section B2-2-03

If the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence,
there are no limitations on the number of properties that the borrower can currently be financing.
If the mortgage is secured by a second home or an investment property, the borrower may own or
be obligated on up to ten financed properties (including his or her principal residence).

Fannie Mae's standard eligibility and underwriting policies apply if the borrower is financing a
second home or investment property and will have one to four financed properties; however, if
the borrower will have five to ten financed properties, the mortgage loan must comply with the
eligibility, underwriting, and delivery requirements described herein.
tyle
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 3:14pm
Thanks for that piece of info. We'll see where it gets me!
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 3:19pm
Tracktor wrote:
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a...
Newmann, find a bank that sells to Fannie Mae with no overlays(stricter guidelines). Freddie Mac has a four property limit unless the mortgage is on a primary residence. Fannie Mae has a 10 property limit unless the mortgage is on a primary residence. I do 4+ property loans every once in awhile. However, even with Fannie Mae the guidelines are tighter when you own more than 4 properties…………..Or, do a “Cash-out” refinance on your primary and buy the second home with the proceeds……
newmann wrote:
I'm getting info on that too that there were laws that changed as recently as three months ago regarding the ten property limit. The refi of...
I'm getting info on that too that there were laws that changed as recently as three months ago regarding the ten property limit. The refi of our primary residence is being discussed right now but not sure where it will end up. Freaking amazing, the cluster that is our banking system. Too far into the purchase to really back out and go do a bunch of shopping.
Titan1 wrote:
How many properties do you have financed, currently?

If it's less than 10, you shouldn't have any trouble at all with your primary residence.
Six. One by itself, three lumped into one loan , one as a 1/3 investor and one as a co-signer only.
Titan1
Posts
8990
Joined
2/3/2010
Location
Lehi, UT US
12/29/2011 3:50pm
newmann wrote:
Thanks for that piece of info. We'll see where it gets me!
The problem is finding a lender that doesn't have those "overlays"...that'll be difficult. I know Wells Fargo (at least on my side of their company) is taking primary residence loans with borrowers that have up to 10 financed properties. But they won't go over 4 properties on a second home/investment property.
jmar
Posts
14158
Joined
2/11/2007
Location
Oklahoma City, OK US
12/29/2011 4:01pm
Rooster wrote:
The banks have all their capital tied up in derivatives and foreign bonds. Your mortgage paper isn't strong enough to stand on their balance sheet to...
The banks have all their capital tied up in derivatives and foreign bonds. Your mortgage paper isn't strong enough to stand on their balance sheet to use as equity and borrow more against.

Sure they could make money off selling you another mortgage, but not as much as they make selling off the paper and investing it in derivatives. They only want loans they can sell off these days.

They're more interested in gambling than loaning out money for profit.
And as always, a word of wisdom is ignored.
newmann
Posts
24442
Joined
4/1/2008
Location
US
12/29/2011 4:04pm
jmar wrote:
And as always, a word of wisdom is ignored.
???
UpTiTe
Posts
8003
Joined
4/1/2008
Location
CA US
Fantasy
1216th
12/29/2011 7:36pm
Don't use a bank that will shop your loan, use a local savings &loan. I found them to be the easiest to work with and they don't have to deal with the BS, you get to know them and keep current and they will continue to help you. That's my experience with my local S&L.
level
Posts
6184
Joined
8/27/2006
Location
Acworth, GA US
12/29/2011 7:48pm
I've tried to get re-financed twice in the last 2 years. Once with Wells Fargo and once with a credit union. I have perfect credit, make great money and have had mortgages with Wells Fargo for over 10 years.

Wells fargo dragged there ass because they were so busy doing modifications that the process just finally ran out and they gave me shit about my income even though I gave them 3 years of tax statements, 6 months of bank statements, 2 months worth of paystubs. Everything. I guess they just didn't believe I made that much money. I work in a family business. My dad runs a car dealership.

With GA's own they gave me shit on the appraisal of the house. I did a bunch of modifications and upgrades and was in the process of doing 2 rooms that currently had no ceilings or floors because I tore them out getting ready to put new ones in. They gave me shit about income also and said I needed to get the work finished and get a permit before they could do anything.

Credit union said they couldn't appraise the house even though Wells Fargo appraised it less than a year ago no problem. They said they couldn't use that appraisal. I was like it's been less than a year and nothings changed so yes you can.

They just didn't want to do it even though I never been late on a payment in my life and been paying on this home for over 7 years. Plus, I wanted to do a 10 year mortgage-not a 15 or 30 and they still wouldn't do it.

Just pisses me off because people are getting modifications done left and right and those of us wanting to do an honest refi are having problems.

I just can't fucking believe it. I currently have 5.25% interest rate and 10 years left on my home and wanted to get to 3.5% on a 10 year or even 15 would be fine.

So pissed off about the whole fucking thing. Never had problems with refies in the past. Wells Fargo did a refi on this home 5 years ago when I got divorced so not sure what there problem is. Nothings changed except the balance of the mortgage is now lower and the appraisal was actually higher now than when I refied it 5 years ago. Just don't get it.
Tracktor
Posts
2345
Joined
8/17/2006
Location
The RTF/Amboy, WA US
12/29/2011 10:31pm
Look, I know that everyone who has refied or purchased a home or listened to someone bitch on talk radio about the mortgage industry instantly becomes a self-proclaimed expert in the world of home finance. However, in just this thread alone there is so much misinformation it's a bit comical.
People bitch about how guidelines were too loose and everyone with a pulse could get a loan then whine when this gets applied to their situation. Sorry, it doesn't work that way.
Level, an appraisal is technically only good for one day(yes, we can use them older than that) as the next day another "comp" may have sold which would change the valuation model for the property. Thank government regulation that we cannot use another bank's appraisal. HVCC screwed consumers in the name of protecting them. Don't get me started on Dodd/Frank.

My biggest piece of advice is don't worry about which company you go through find a loan officer you trust. Good loan officers make sure they are working for a company which helps them fund loans because that is the only way we get paid! Ask around and get a referral or two and go from there. There are great loan officers and horrible ones at every bank, credit union, and broker shop. BTW, VERY FEW COMPANIES keep their own paper and if they do expect to pay more for it. Almost every loan is sold to Fannie/Freddie/Ginnie even when the original issuer retains the servicing rights...............................................
12/30/2011 8:00am
refi'd my house from a 5.5% 30 yr (23 yrs left on it) to a 3.25% 15yr. Did everything online except the actual closing and appraisal.
Easiest refi I've ever done.

The only crappy thing was the appraisal came in at 17k below what I paid for the house 10 years earlier. I still have 30% equity, but it sucks I pumped in approx 40k in improvements over those years and the house still dropped in value. I can't cry too much, at least I owe less than it's worth. Still hurts a bit to get that report though.
SweetDaddy
Posts
654
Joined
11/21/2006
Location
Orlando, FL US
12/31/2011 9:00am
Beach house in FL? Care to share your homeowners insurance quote? How bout property taxes? Those two combined dissuaded me from beachfront property.

Post a reply to: Can't get a mortgage if you have 4 pieces of property financed???

The Latest