Mortgage Lenders Past The 4 Mortgage Limit
All,
Does any one know of any banks or mortgage companies that are financing past the new "four mortgage" limit? Countrywide just stopped and Wachovia is not doing these loans any longer.
Any ideas out there?
Thanks.
JS.
Hi JS,
New to the site...I just posted about this subject on a different topic. I think you will have to either use hard money/private lenders or commerical loans. I have the exact same issue. Good luck
GH
There are a few lenders that still make portfolio loans. The successful real estate agents in your area should know who these lenders are that service your market area.
I have four investment properties and one home in which I live. It would be great to refinance my investment properties at the new rates, but I am running into a problem with the 4 property limit, and I am looking into solutions. Here are two ideas I have, but I need feedback on their feasibility.
One: Finance one of my properties through a hard money lender. Would this then allow me to refinance the rest through fannie mae?
Two: Call my mortgage companies and attempt to negotiate a lower rate. I would tell them that I am planning on refinancing and ask them if they would be interested in keeping the loan if they would give me a lower rate. (I am, of course, hoping that they will not know that I am not really in a position to refinance.)
My credit is above 800, so the new 4 property limit is extremely frustrating.
New Kid,
Thanks for the info. Is there any other way to get a property off the books as a financed property? (Aside from paying off the loan.)
Use a commercial loan to finance the property, and take title in the name of your business entity. You may still have to personally guarantee the loan, but it should not show up on your credit report.
Commercial loans for property owned by your business do not count toward the 4 property limitation.
[ Edited by NewKidInTown3 on Date 01/02/2009 ]
The key is to find an institution that will originate and service your loan. NewKid is right... and it is a fantastic deal when the properties are in the LLC and do not show on your credit report.
Personally, I would always buy in the LLC. In my case it is a multi-member LLC and as field service manager (and member) I always act (purchase, manage, etc.) in the LLC. If it were me... I would transfer property to (deed into) the LLC as a capital contribution, then start working on the bank/lending entity to get a "cash out" on the best terms you can negotiate. Several of us (YPOChris, me, others) did this for years, either personally or in companies, and you can still do it. We still are, although a t a REALLY SLOW pace compared to 12 or 24 months ago. It does take financial strength, determination and persistence. And it is definitely a process. But the rewards are worth it.
Check with your accountant and member agreements about the capital contribution into the LLC. And keep good documentation.
Thank you for your responses. My wife and I are new to investment properties. I am enjoying reading the boards!
Dave