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financebiz
661 Posts |
 Posted - 10/11/2008 : 12:36:58 PM
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| What is the maximum number of investment mortgages someone can obtain? |
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velecico
3935 Posts |
Posted - 10/11/2008 : 4:19:38 PM
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infinity |
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dealmakerz
143 Posts |
Posted - 10/11/2008 : 4:44:07 PM
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| FNMA limits the borrower to four financed in Announcement 08-22 with an effective date of 12-1-08. |
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peter
4543 Posts |
Posted - 10/11/2008 : 6:20:35 PM
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What if the borrower quit claim some of the properties to
family members and reduced them to only 4, will be there be
any title seasoning requirement to allow the refinance?
Or the borrower could refi right away after the quit claim deeds
had been recorded -- even after one day?
Anyone knows about this?
Peter |
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nowbroker
1364 Posts |
Posted - 10/11/2008 : 6:27:41 PM
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| If they are financed (which is the only ones you have to worry about) they will still show on the credit report even though he deeded them away. The loans would then be in technical default since they most likely have due on sales clauses. The lender will see them on the borrowers tax returns. |
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peter
4543 Posts |
Posted - 10/11/2008 : 6:38:19 PM
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Todd, you're right. Forgot to think about this.
So, refinancing the excess properties to family members
and have the family members on the new refi notes and new
deeds would be the only way to circumvent this rule, but
I am sure Fannie/Freddie must some guideline to plug this
loophole.
Let's say the borrower has 5 investment properties and he
will sell the excess (1) to his son thru a gift of equity
direct sale and the L/O arranges the loan, then he will
have only 4 properties left and thus can meet the guideline.
Looks like this max 4 investment property rule may create
some business for the L/O as well as he can do a gift of
equity purchase loan for his borrower who will sell it to
his son in this example.
Peter |
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nowbroker
1364 Posts |
Posted - 10/11/2008 : 6:47:19 PM
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Ya, this rule stinks.
I have more than 4 financed properties and one adjusts the end of next year. Presently, the one year T bill is so low that fully indexed is less than 4.5%, yet I do not like ARMS. I have a 90% NOO credit line on this home with no balance that I am sure Wells would never subordinate in today's world. Don't know what to do.
Some lenders are still at 10, like Countrywide, but they will change in the next month or so. Portfolio lenders will go higher, but the rate they are dropping don't know if they will still be around next year. |
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nowbroker
1364 Posts |
Posted - 10/11/2008 : 6:47:30 PM
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Ya, this rule stinks.
I have more than 4 financed properties and one adjusts the end of next year. Presently, the one year T bill is so low that fully indexed is less than 4.5%, yet I do not like ARMS. I have a 90% NOO credit line on this home with no balance that I am sure Wells would never subordinate in today's world. Don't know what to do.
Some lenders are still at 10, like Countrywide, but they will change in the next month or so. Portfolio lenders will go higher, but the rate they are dropping don't know if they will still be around next year. |
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