Tuesday, May 28, 2013

Maximum Number of Loans for Rental Homes Now Up to 20

The lending world is opening its doors up to investors who want to purchase single family homes as investment properties in greater numbers. (This applies to other 1- 4 units rental properties too - condos, townhouses, PUDs, duplexes and fourplexes.)
In 2007 it was impossible to find a lender that would loan to an investor with more than 4 investment property loans in his portfolio.  A few years ago, select mainstream lenders lenders bumped the number to 10 loans per investor.  Finally there is at least one lender who will allow 20 loans in a portfolio.
This number is aggregate even if a couple loans are with Bank of America, some with Wells Fargo, a few with Citibank, etc. Four was a very restrictive number, 10 is better, but there definitely are investors out there that own dozens of financed rental properties.  Their ability to refinance was also stymied.
Outside of that restrictive box are hard money lenders, portfolio lenders, commercial lenders and lenders in the 5+ unit apartment market
We have solutions for you if you are interested in buying or refinancing a rental property.