What are the max number of mortgages you can have on your credit report? I hear it is 10.
The reason I ask is because I want to start buying properties with my LLC to keep for long term cashflow. I currently have 3 mortgages on my credit report, and I want to keep some of the properties I am rehabbing. Will I be able to keep up to 7 more? Or can I allow my LLC to purchase them?
Who are the lenders that approve LLCs for mortgages at least a 90% LTV ratio>
Fannie Mae/Freddie Mac it is 10. There are sub-prime lenders that have no limit on the amount you own. You will just have higher interest rates on the sub-prime loans.
Couldn’t you just do the loan in your name first and them quit claim deed the LLC on and you off the title? It will open up the selection of lenders you can use quite a bit.
So, by subprime do you mean 680 credit score and under? So, with my 748 middle score, I can obtain more loans over 10 with various lenders? I would like to have my options available now, I expect to have 10 properties by November. Are there any particular lenders? Or is it best to get a good mortgage broker?
And if i quit claim deed to the LLC won’t the mortgage still be on my credit report? I am new to investing, and I want to acquire more of the properties that I am rehabbing.
Shaun is correct about the “10” limit for fnma/fhlmc loans. These are the loans that offer the most attractive rates. You are typically limited to 90% for 1-2 units and 80% for 3-4 units. Less if stated income. So if you need higher ltv financing or have gone over the “10” limit then there are portfolio/alt-a loans offered by those same lenders. These are not subprime loans which are typically reserved for credit challenged borrowers. Rates are slightly higher than conforming loans but still will allow for great cash flow.
Quit claiming these over to a LLC will not accomplish minimizing the total number as stated previously. Your mortgages will still show up on the credit report.
Conventional lenders do not make loans to LLCs. Banks and a few other entities will do this. One other point, if you finance in the name of an LLC with a commercial loan, this will stil need to be disclosed to conventional lenders if qualifying for full doc. Since going full doc you will have to disclose personal and business tax returns. The proporerties owned wil show up in those.
I have 11 loans including my home equity loan. And I tried to refinancing one of my rental with only 70 LTV. The bank wouldn’t finance me, because I have too many loans out. So what kind of loan is available to me? to refinance and new purchase? I have credit score of 720+
begin refinancing the properties to an LLC. Frees up credit plus provides asset protection.
No one should own investment property in their own name, anyway. It’s like painting a target on your forehead for a lawsuit.
If you ask an underwriter what their policy is on counting proporerties financed by/
titled by an LLC, the majority will tell you that you have to disclose those on the application. Any financed property that a client has an interest in. This would even include proporerties quit claimed over with the original owner’s mortgage intact. This comes down as a Fannie guideline and inforced by most lenders.
So having a commercial loan will not help in that matter.
disclosed, yes.
shows up on credit report and figures into FICO, no.