If you’re ready to expand your real estate portfolio, you may be wondering how many mortgages can you have?
If you don’t have the cash to buy multiple properties (most people don’t), you’ll need financing. The good news is, yes, you can have more than one mortgage.
But there’s a catch:
You’ll need to meet a few requirements to get lender approval.
How Many Mortgages Can You Have?
The limit of how many mortgages you can have changed after the housing crisis in 2009. Before that, Fannie Mae used to limit borrowers to four mortgages.
You can have up to ten loans at one time.
This is the maximum number of loans, but it doesn’t mean you’re guaranteed to get that many.
You must prove you can afford the loans, just like when you apply for a primary mortgage.
Why Would You Want More Than One Conventional Loan?
You might think it sounds crazy to have more than one conventional loan. After all, houses aren’t cheap!
But if you’re into investing in real estate, mortgages are usually the least expensive financing option when it comes to closing costs and interest rates.
For mortgages, conventional loans are your only option if you’re looking for financing for investment property.
Government-backed loans like FHA loans and VA loans are only available for primary residences — you can’t use them for anything but the home you plan to live in.
Fortunately, conventional loans are affordable and have attractive terms.
Requirements for Taking Out Multiple Home Loans
You can have up to ten loans for financed properties. Before you apply for multiple mortgages, you’ll want to understand the requirements to qualify.
Qualifying for Home Loans 1 to 4
When you have between one and four mortgages, the loan requirements are similar to buying a primary residence as a first-time homebuyer.
Qualifying for Home Loans Beyond Four
If you already have four conventional mortgages, you may qualify for more. But the requirements get more stringent:
This 3-Digit Number Can Save You Thousands!
The average credit score for new, approved home mortgages is 732 according to the FHFA while borrowers with a 600 credit score or less make up just 6.5% of approved home loans.
What's your credit score? Give the Good News Lending team a call at 901-651-9935 to discuss your options.
Other Ways to Finance Multiple Mortgages
Mortgages aren’t the only option to buy multiple homes.
Other ways to finance multiple mortgages include:
You Shouldn't Have To Choose
Too many borrowers think they must choose between the convenience of an online lender and the hands-on service you might get from the "small guys."
But We Believe You Can Have It All!
Is Having Multiple Mortgages Worth It?
Pros to More than One Conventional Loan
Cons to More than One Conventional Loan
Did You Know?
Mortgage rates have hit all-time lows in recent months. Some people have been able to take advantage of the opportunity and secure a historically low rate. Since rates change all the time, give us a call at 901-651-9935 for an up-to-date rate quote.
More Than One Conventional Loan - The Bottom Line
It’s possible to have more than one conventional loan. But, you must make sure you meet the qualifying factors.
Specifically, it’ll help to maximize your credit score, keep your debt-to-income ratio low, and have as much money in liquid assets as possible.
The sooner you work on your qualifying factors, the higher your chances are of getting attractive financing options for your investment properties.
Ready to apply? Get a free quote today!