The answer is yes you can, but it is a matter of finding a lender who offers the 5-10 properties program.
In 2009, Fannie Mae raised the maximum number of financed properties from 4 to 10. However, most lenders are not offering the 5-10 properties program, even though Fannie Mae says it will buy the loans. Here is why:
The underwriting of a 5-property-owning is hard work. Paperwork submissions with complex tax returns, rental properties, and other more detail to verify make it rather unattractive. It is no surprise that most banks don’t do it, but a few of the nation’s banks will. You just have to know where to find them.
In order to purchase and finance a home through Fannie Mae with more than 4 existing financed properties, investors must meet all of the following criteria:
- Own between 5-10 residential properties with financing attached
- Make a 25 percent downpayment on the property; 30 percent for 2-4 unit
- Minimum credit score of 720
- No mortgage lates within the last 12 months on any mortgage
- No bankruptcies or foreclosures in the last 7 years
- 2 years of tax returns showing rental income from all rental properties
- 6 months of PITI reserves on each of the financed properties
Call me at (408)-835-7743 if you have questions about mortgages with 5 or more properties financed.
