how many mortgages can you have in your personal name?

grinch31793 · Joined: 24 Nov 2008 Posts: 1 1.32 Dollars($)

We own various rental properties and have a good income, but we are hearing that you cannot have more than 5 mortgages now, we currently have 10 and we just built a new home and now we are hearing this. Is is true?

cliff · Posted: Mon Nov 24, 2008 11:34 am Post subject:

Hello grinch,

Usually once you have acquired 4-5 current mortgages in your personal name lenders will not approve any additional current mortgages.

We help and counsel many property investors in this very issue here in Texas. We suggest you finance your properties into an entity(LLC, etc.). You will need to establish a banking relationship and hopefully have great credit to get great rates for financing these properties into the entity. Having too many mortgages within your personal credit report can be harmful to your personal credit score as well. You need to have your properties not showing on your personal credit report.

Let us know if you still have questions. You may visit home-buddies.com and sign up for a free session.

Good Luck. Very Happy

smithsussane · Posted: Mon Nov 24, 2008 7:56 pm Post subject:

Hi grinch!

Welcome to forums!

I think you should follow Cliff's advice. If you convert your properties into an entity i.e LLC or others, you will also get certain taxation benefits and also the owners of the LLC are protected from certain liability for acts and debts of the LLC.

Feel free to ask if you have further queries.

Sussane

ctrotta · Posted: Tue Nov 25, 2008 8:11 am Post subject:

Fannie and Freddie reduced their cap from 10 properties total to 4. Cliff is right, put all your long-term rentals into an LLC. You can then take that parcel of properties to a broker or commercial lender, and inquire about a blanket loan, which will clear up your personal credit, and give you much more flexibility over your investment properties' equity. Expect these type of loans to be just a little higher in interest rate, as they're considered commercial loans. Email me if you have any questions.

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