Did loan requirements just go from bad to worse?

We currently have a mortgage on our home and three rental properties with a single mortgage each. Only a few months ago, finding a lender for our situation wasn’t difficult with 20 percent down. However, we were recently told that our credit union is no longer doing loans on rental properties because “the government is making it difficult.” Another source told us our debt to income ratio is slightly too high now that the guideline changed, and others have told us their limit was 4 mortgages total. The only place that “pre-approved” us is Flagstar with the requirement of 25 percent down, but they did very little due diligence, so I’m not confident they will come through.

Did lending requirements just get stricter? Are there any banks that are lending with 20 percent down on a forth rental property?

Basically, Lenders are making lending guidelines more difficult so that they can “opt out” of any of the riskier situations. The term “riskier” has changed drastically in just the last year and is really left open for Lender discretion.

It is not just NOO properties, OO properties have much stricter guidelines as well.