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Do you mean 4 mortgages on the same property? If so, then that is insane. No lender wants to be in 3rd position, let alone 4th position. The lenders I deal with will not accept that at all.
But if you mean, 4 mortgages on 4 different properties, then yes. As long as you have the income, you will be able to find a mortgage.
Fannie allows up to 10 financed properties, but most lenders have what is known as an overlay. This is where they tighten up the guidelines to accomodate their own level of comfort/ risk. There are lenders that don't have overlays and will go to 10 but you will have to be an A+ client. 740+ credit, stable and fully documentable income, and liquid assets after closing most likely to the tune of 6 months of all liabilities (everything on your credit report- all mortgages, car loans, student loans, credit cards etc).
If your working with a bank go talk to a broker who has more options available to them than just 1 lenders guidelines. Its not easy nor everywhere but it can be done.
Thanks! I was talking to a bank mortgage consultant. Will explore the broker avenue. Is the cost more as a result of having a middleman?
Sometimes it's less with a broker. The fees are negotiable. FWIW, if you're doing investment properties, you should expect to pay a little higher rate than owner-occupied anyway.
Many of your regional banks have a loan product called "Fannie Retained." This is financing that is delivered directly to the Fannie Mae window, but the loan stays with the lender, who is going to hold your mortgage, so no outside underwriting is needed.
My mortgage loan consultant told me that there is no way for someone to get more than 4 mortgages.
Is there a way around this so banks would lend to you?
Thanks.
Just found this out myself and have been going back and forth with my mortgage broker, and a local bank.
Since I'm looking for mortgages on investment properties it seems the only sure way (that I have found so far) is to get a commercial loan. Interest rate is a little higher (was quoted between 5% & 6% by the local bank), with a 5 year arm and 30 year term or no arm and a 25 year term.
My mortgage broker said he has one program that may allow me to get a 5th and 6th mortgage (residential, not commercial) and I'm waiting to hear back from him.
I understand the banks not wanting to assume ANY risk any longer, but it's ridiculous. I have excellent credit, have never been late on a mortgage payment, can meet all the reserve requirements for my existing properties....it's a shame that folks who aren't risks, never have been risks, never will be risks, have to pay for the mistakes of the industry and others.
Just found this out myself and have been going back and forth with my mortgage broker, and a local bank.
Since I'm looking for mortgages on investment properties it seems the only sure way (that I have found so far) is to get a commercial loan. Interest rate is a little higher (was quoted between 5% & 6% by the local bank), with a 5 year arm and 30 year term or no arm and a 25 year term.
My mortgage broker said he has one program that may allow me to get a 5th and 6th mortgage (residential, not commercial) and I'm waiting to hear back from him.
I understand the banks not wanting to assume ANY risk any longer, but it's ridiculous. I have excellent credit, have never been late on a mortgage payment, can meet all the reserve requirements for my existing properties....it's a shame that folks who aren't risks, never have been risks, never will be risks, have to pay for the mistakes of the industry and others.
Or, you can look at it another way. Why should Fannie & Freddie finance investment properties at all? The risk on any investment property is far greater than an owner occupied one. They are quasi gov't agencies with an objective of promoting homeownership not commercial enterprise.
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