Posted by Chris in FL on May 06, 2006 at 13:06:58:
John,
I mentioned to you once previously that I have run into the same issue. I have 10 mortgages, and currently seem to have to pay off a mortgage in order to qualify for a new one (limit ten). Have tried at least a dozen lenders and/or mortgage brokers. Credit mid 600s… No defaults or late pays ever, but many new loans (active investor), and high revolving debt (HELOCs and cc at 5.99% for life of balance). Am getting close to $1mil in net worth. Have 5-6 properties free and clear, but mostly MHs on land that are hard to borrow against. Properties average $200/month posivie cashflow, with some way above and some negative (because of refi’s with the cash used to buy other property as a cash buyer). You say there are lenders that will go above the magic number (10 mortgages)? Traditional, or other? Where might I look to find some of them? Thanks so much for any help, as I am sure Dale and I are not the only ones facing this obstacle.
-Chris in FL
amount of houses i can finance - Posted by Dale-Ohio
Posted by Dale-Ohio on April 11, 2006 at 11:08:45:
Ok i am still getting comnflicting messages on the amount of houses i can have on my credit report. I want to keep buying properties but am bieng told that i am getting to my limit of houses alowed on my credit report. Is 9 or 10 the limit or can i do something crestive to get around this. Also is it 9 or 10 per year?? Or just 9 or 10 per liftime. And no subject 2 does not work in my area. no money in it. more money on fixer uppers. thanks
Re: amount of houses i can finance - Posted by John Corey
Posted by John Corey on April 11, 2006 at 15:46:30:
Dale,
There is no legal limit. There is no limit for the credit reporting agencies.
There are specific lenders or secondary market players who have limits.
When you go beyond what is common in the marketplace you will find the number of lenders you can consider to be limited. Or the pricing for the loan will be higher than it might have been with fewer properties in your name.
10 is a limit for some participants. Others want to stop at 20. Some go to 100. Others have no limits.
Ultimately it is a pricing decision based on the risk and rewards to the lender.
Your track record, your equity in a deal (from cash) and some other variables can also cause a lender to be open to doing the next loan or to decline the loan even when you are below what you thought was their limit.
Managed correctly you will never have a limit, just a difference in the price you pay to borrow the funds.