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Ran into a bizarre snag on refi today
Posted on 1/7/21 at 12:21 am
Posted on 1/7/21 at 12:21 am
My banker told me this in an email:
The investor that we were doing the loan through will not allow the borrower to own eight properties total. Said it was an investor rule, not Fannie Mae.
This is a $170k loan on a $425k appraisal @ 2.375%.
Anyone run into this before?
The investor that we were doing the loan through will not allow the borrower to own eight properties total. Said it was an investor rule, not Fannie Mae.
This is a $170k loan on a $425k appraisal @ 2.375%.
Anyone run into this before?
8
Posted on 1/7/21 at 12:58 am to craynagin
(no message)
This post was edited on 1/9/21 at 11:04 am
Posted on 1/7/21 at 6:29 am to craynagin
FNMA has stricter guidelines once you have over 6 loans, I believe.
Investors have been stuck with refinances (cant sell in secondary market to FNMA because of those guidelines) so they start constructing their appetite at 8.
An investor getting stuck with a loan is a big deal.
Its nothing personal. Just business
Investors have been stuck with refinances (cant sell in secondary market to FNMA because of those guidelines) so they start constructing their appetite at 8.
An investor getting stuck with a loan is a big deal.
Its nothing personal. Just business
Posted on 1/7/21 at 6:59 am to craynagin
I can’t say I’m surprised, as a lender, 8 mortgages is a lot. I don’t care who you are.
Is it a little unfair if you qualify? Probably so, but I get it from a lenders perspective.
Is it a little unfair if you qualify? Probably so, but I get it from a lenders perspective.
This post was edited on 1/7/21 at 7:55 am
Posted on 1/7/21 at 9:13 am to bubbz
quote:
Is it a little unfair if you qualify? Probably so, but I get it from a lenders perspective
Nobody has a birthright to a mortgage backed by the government (better rate because it offers better liquidity for the investor). What about if you have close to 10 mortgage backed securities? Does that make the birthright a stronger case? No.
Underwriters reject loans all of the time because they fear an issue will get the loan stuck on their credit line in audit.
Posted on 1/7/21 at 9:55 am to craynagin
Nope, but rules are rules. Do you trust your wife?
Posted on 1/7/21 at 10:10 am to craynagin
Great rate on an investment property
Who was the lender?
Who was the lender?
Posted on 1/7/21 at 10:14 am to craynagin
I own a number of rentals, most are free and clear and I run into such restrictions as well. Before you get to that number you should be looking into some/most/all to be owned by a LLC.
Posted on 1/7/21 at 10:29 am to craynagin
This is bizarre - Fannie guidelines are you can have up to 10 properties. Ask if the lender has access to multiple investors. The rate you got should be available with multiple investors and might be able to still go through. If you are in Louisiana, I am pulling up a rate with those numbers of 2.875%.
Posted on 1/7/21 at 1:14 pm to bubbz
quote:
I can’t say I’m surprised, as a lender, 8 mortgages is a lot. I don’t care who you are.
That doesn’t make sense. He didn’t say mortgage, he said own.
Posted on 1/7/21 at 2:52 pm to craynagin
quote:
will not allow the borrower to own eight properties total.
Are some of them not in an LLC? If they are in a different LLC I don't see the issue here?
Just to be clear, you said own but do they all have mortgages?
Your other option is to cash out refinance some of them to pay off 1-2. Keep the same amount of money loaned but fewer loans.
Posted on 1/7/21 at 9:27 pm to baldona
Own, not mortgaged.
Have one commercial property mortgaged, two others free and clear. Trying to refi home mortgage now, they quoted 2.375 and one point.
The lender said it was the number of properties I owned (per tax roll) that caused the issue.
Hope it works out. We'll see...
Have one commercial property mortgaged, two others free and clear. Trying to refi home mortgage now, they quoted 2.375 and one point.
The lender said it was the number of properties I owned (per tax roll) that caused the issue.
Hope it works out. We'll see...
Posted on 1/8/21 at 7:45 am to craynagin
They are all in your name? Or all owned by the same LLC? You can fairly easily place them in multiple LLC’s and remove this issue.
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