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Real Estate Investing: How Many Mortgages Can You Have?

Many people are unaware they can purchase multiple investment properties with conventional mortgages. If you’re interested in growing your real estate portfolio beyond your personal property, then it’s worth understanding the limits.

Since 2009, The Federal National Mortgage Association (FNMA), colloquially known as Fannie Mae, has set the cap for conventionally financed properties to 10 (formerly 4). This article will cover what it takes to qualify for multiple mortgages and alternative funding options.

Qualifying for your First Four Mortgages

Qualifying for your first four mortgages comes with fewer hurdles than you’ll face applying for your fifth, sixth, or seventh. Typically, you must meet the following criteria:

  • Official proof of income
  • Good credit (670-739)
  • Statement of assets and debt
  • Documentation for current mortgages
  • Financials for current investment properties
  • A loan-to-value ratio (LTV) of up to 80%

Qualifying for Five to Ten Mortgages

The Federal National Mortgage (FNMA), colloquially known as Fannie Mae, capped the number of conventionally financed properties at four but has since raised it to 10.

However, qualifying for your fifth to tenth mortgages comes with more stringent underwriting guidelines. These may include:

  • 25% down payment on each investment property
  • 30% down on duplexes, triplexes, and quads
  • Minimum credit score of 720
  • 0 late mortgages payments
  • No bankruptcy or foreclosures in the past 7 years
  • Tax returns on rental income for all properties for two years
  • Cash reserves for a minimum of six months of payments
Real Estate Investing: How Many Mortgages Can You Have?

Loans are made or arranged by Wilshire Quinn Income Fund, LLC (the “Fund”) pursuant to California Finance Lenders Law license #603J060. The information contained in this message is for informational purposes only and is meant to provide general background information on the Fund and its manager, Wilshire Quinn Capital, Inc. (the “Manager”). Any and all information herein is deemed reliable but is not guaranteed.

Real Estate Investing: How Many Mortgages Can You Have?

How to Manage Multiple Mortgages

Managing multiple mortgages is akin to running a business. You must have systems to track, schedule, and update repayments while ensuring you have enough cash reserves at the end of each month.

Alternatives to Financing Multiple Mortgages

While it is possible to finance up to 10 mortgages at a time, there are alternatives that may be better suited to your financial situation and real estate investment goals.

Portfolio Loans

Portfolio loans reduce the waiting period typical among more conventional loans. The downside is that they have relatively high-interest rates and may levy penalty charges for paying off the loan early. To qualify for a portfolio loan, one must offer a high down payment and provide proof of assets (collateral) and a high income.

Blanket Loans

With blanket loans, you can finance two or more properties under the same mortgage agreement. They are typically most effective for real estate investors, developers, and commercial property owners because each property can be sold individually while being held together as collateral on the mortgage. However, this means that these properties are at risk if you default. Furthermore, closing costs are typically high, and requirements are strict.

Hard Money Loans

Hard money loans come from private lenders. The approval process is much less cumbersome because hard money lenders don’t put on emphasis on your credit history. Instead, the purchased or refinanced property is the collateral.

You can typically get approved for a hard money loan in days, rather than weeks or months with a traditional loan. While interest rates are typically higher, hard money loans are designed to be short-term, making them excellent for real estate investors looking for rapid funding on a purchase or refinance of an existing investment property.

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 7.5% to 11%

  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available


About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

Loan Amount: $15,575,000 Loan Type: Blanket Construction Property Type: Industrial Loan-To-Value: 62% Term: 12 Months
UKIAH, CA Loan Amount: $6,575,000 Loan Type: Purchase Property Type: Self Storage Loan-To-Value: 61% Term: 7 Months BONITA, CA Loan Amount: $3,450,000 Loan Type: Purchase Property Type: Office Loan-To-Value: 61% Term: 18 Months LOS ANGELES, CA Loan Amount: $10,675,000 Loan Type: Refinance Property Type: Parking Structure/Retail Loan-To-Value: 52% Term: 12 Months

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By |November 19th, 2022|Categories: Uncategorized|
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