Multiple Mortgages for the Same Borrower - Fannie Mae Conventional Guidelines

By
Mortgage Banker with Prospect Mortgage NMLS #151088

Fannie Mae has clarified it's policy relating to multiple mortgages for the same borrower.  In the Fannie Mae Selling Guide announcement states that the following guidelines must be followed:

The financed property limit applies to any combination of ownership in one- to four-unit properties and is cumulative for all borrowers.  These limitations apply to the total number of properties financed, not just the number of mortgages sold to Fannie Mae.

Example: If the borrower owns two properties and the co-borrower owns three other properties, then the financed property limitation applies.  (The total properties owned in this example is 5.)

The calculation applies to all borrowers and co-borrowers, regardless of relationship.  In addition, properties held in a partnership or through a limited liability corporation (LLC), or an S-Corp where the borrower is personally liable on the Note must be included in the calculation of the number of financed properties owned.

Loans that do not meet Fannie Mae's eligibility requirements for the maximum number of financed properties owned may not be approved.

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

Georgia Dream Down Payment Assistance Program Overview/Updates

HomePath Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

Programs Include:

  • Conventional (Fannie Mae & Freddie Mac)
  • HomePath - #1 Volume Retail Lender
  • HomePath Renovation
  • FHA
  • FHA 203K Renovation Loans (Streamline or Consultant)
  • Georgia Dream Down Payment Assistance
  • Jumbo
  • USDA
  • VA
  • Conventional Condo Project Approvals
  • FHA DELRAP / HRAP Condo Project Approvals

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Rodney Mason is a Sr Loan Officer located in Atlanta, GA.  He is also 203K Renovation Loan and HomePath REO Property Specialist.  He can be reached at (404) 591-2453.

Providing financing for cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.


Providing financing for cities across Alabama including: Alabama Port,
Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

 

               

NMLS #151088 - Licensed in AL & GA.  HomePath® is a registered trademark of Fannie Mae.

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Topic:
Lending / Financial
Location:
Georgia
Groups:
Consumer Mortgage Tips
Georgia Association of REALTORS®
MetroAtlantaRealEstateProfessionals
REO ALABAMA
REO REALTORS
Tags:
multiple mortgages
same borrower
fannie mae conventional guidelines
investment properties

Comments 2 New Comment

Anonymous #1
Anonymous
Keith Miller

Where can I find this official policy.  I had a divorce, I have six properties financed, I own 5 properties (the ex have 1 property with equity).  4 properties are positive cashflow near 75% LTV and one california house that is 0 equity if not upside down.  Can I do anything.  Divorce papers say I will make a goodfiath effort to refinance.      

December 15, 2010 12:46 PM
Rainmaker
342,154
Rodney Mason
FHA 203K, USDA, VA, HomePath Renovation Specialist
Prospect Mortgage

Keith.....This change was announced by Fannie Mae several months ago.  Not every lender does lend to those owning 5-10 units though.  For borrowers owning 5-10 properties, the maximum LTV is 70% and it is limited to a rate/term refinance.  Cash out is not allowed.  Since you are at 75% LTV, you would not be able to refinance unless you have money to pay down the loans. 

December 17, 2010 11:38 PM
Rainmaker
342,154

Rodney Mason

FHA 203K, USDA, VA, HomePath Renovation Specialist
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