I can't get you over the 10 but if 10 or under properties in California I can finance. There are some restrictions (qualifications) as noted above and below as it pertains to financial reserves, credit and qualifying. Qualifications get more restrictive the more properties you own but it worth looking at and positioning yourself in advance of applying for a loan since the savings are significantly lower than private or hard money.
Today's Rate as of 10/27/2017 (subject to change) on single unit investment property at 75% LTV with a FICO of 740: 4.875% at "no points"
I just posted this elsewhere on similar thread on the message board but it is worth the duplication (to me and hopefully you).
Do you want to finance up 10 properties in California?
You will of course want the best rate possible which are loans at bank quality rates. The rules pertaining to 10 financed properties are set by Fannie Mae & Freddie Mac rules which nearly all bankers and institutional lenders abide by.
Exclusions to the 10 financed properties are:
- Multifamily of 5 units of greater
- Vacant land
- Exclude primary residence if it is the subject property for loan (refi or purchase)
- Exclusion if subject property is already owned by Fannie or Freddie prior to 4/2010 (I need to double check date if this comes up) as this is the date for HARP
What are the hang-ups and why does it get more difficult for each additional property you own?
Primarily it is the financial reserves that are required for each additional property, the loan-to-values get less and credit requirement (FICO Score) gets higher.
Subject property X 6months PITI
2% of aggregate of unpaid balances of if borrower has 1 to 4 financed properties
4% of aggregate of unpaid balances of if borrower has 5 to 6 financed properties
6% of aggregate of unpaid balances of if borrower has 7 to 10 financed properties
+++ exclude primary residence from above
Example if you own 8 financed properties:
NEW Subject PITI is $2000/month x 6 months = $12,000
Other properties unpaid balance are $1,500,000 (exclude primary residence) x 6% = $90,000
Thus if you would need $150,000 in above example (I can use % of 401K & IRAs in lieu of cask reserves)
680+ for up to 6 financed properties
720 + for 7 to 10 financed properties
Loan-to-Values (rate/term & Cash-Out)
65% to 75% depending on type of property
If the property you desire to finance is in California give a call or send me an email. I’d love to talk to you. No cost or obligation, we can go through the numbers and qualifying issues to see if we can you a bank quality(best terms) loan.