Refi Or Commercial
I need some help please. I have ten SFH @6.75%. I would like to cash out/refi and use cash to possibly get into commercial (multi-fam, apartments). Can I combine these properties into one commercial loan in my LLC name, or can I refi this many properties with the new Fannie/Freddie four house limits? Thanks everyone,
Porkchop
Not yet. Just trying to get some sound advice as to which direction to take.
I thought the latest was the loan limits had been greatly increased
from: http://viviannerutkowski.wordpress.com/2009/03/08/fannie-mae-raised-loan-limit-on-investor-and-second-home-borrowers-from-4-to-10-%E2%80%93-policy-takes-effect-march-1-2009/
Fannie Mae Raised Loan Limit on Investor and Second Home Borrowers from 4 to 10 – Policy Took Effect March 1, 2009
March 8, 2009 by viviannerutkowski
At the urging of NAR, Fannie Mae announced a new policy to allow investors and second home buyers to obtain up to 10 loans which in practice allows to purchase up to 10 financed properties. The new policy took effect on March 1, 2009, and replaced the 4-loan limit. The restriction applies to the total number of loans, not just to the loans sold to Fannie Mae.
The new regulation means that investors and second home borrowers can finance up to 10 purchased properties, if each property is financed with only one mortgage. For example, an investor can purchase five (5) properties if each property requires first and second mortgage, or nine (9) properties if only one (1) of the properties is financed with first and second mortgage and the other eight (8) with one mortgage. The number of loans cannot exceed 10 per investor, as per the current 10-loan limit.
Investor and second home borrowers that seek to own between 5 and 10 financed properties must meet additional eligibility requirements. Borrowers must have a credit score of at least 720. The maximum loan-to-value ratio is 70% or 75%, depending on specified criteria. Borrowers may not have any history of bankruptcy or foreclosure in the past 7 years, or any mortgage delinquencies of 30 days or greater within the past 12 months. Reserve and other requirements also apply.