How many mortgages are you allowed to take on? You may be wondering just how many mortgages you can apply for if you want to extend your real estate investment portfolio.
Purchasing numerous homes can be a terrific way to increase your assets, especially if you make good judgments along the way. However, before deciding to take the leap, you should carefully analyze your ability to take on several mortgages. Are you interested in learning more about having multiple mortgages? Continue reading.
How Many Home Loans Can You Get?
The Federal National Mortgage Association (FNMA), more popularly known as Fannie Mae, raised the number of conventionally financed homes permitted per individual from four to ten.
While you may be able to qualify for multiple home loans, you may face some difficulties in obtaining up to ten traditional mortgages. To begin with, lenders may be wary about signing off on that many mortgages, viewing you as a higher lending risk. You may encounter lender reluctance if you want to obtain more than one mortgage at the same time. You may be required to make a larger down payment, have a larger cash reserve, and have a higher credit score if you are applying for more than one mortgage. When you own numerous properties, you could also potentially face higher mortgage interest rates.
Qualifying for Mortgages
Your lender may require you to meet certain requirements if you wish to qualify for more than one mortgage:
– A credit score of 670 to 739, which is considered good to exceptional
– A loan-to-value (LTV) ratio of up to 80%
– Current rental properties that provide cash flow
– W-2s or tax returns as proof of income
– Assets and liabilities statement
– Financial statements of your existing properties
Your lender may also impose other conditions based on your situation. If you are considering applying for more than one mortgage, it’s a good idea to get in touch with a few lenders to understand what may be required of you and how to go about the process. Remember that it’s more important than ever to comparison shop for loans if you are looking to apply for more than one mortgage.
