Sunday, August 22, 2010

Is there a limit to the number of houses I can get mortgages on?

I'm being told two different things by two different banks. One says I can have 10 mortgages per bank, another says I can only have 10 mortgages regardless of how many banks they are through. Any help out there?Is there a limit to the number of houses I can get mortgages on?
Most mortgage companies will not even lend to a borrower who has more than 8-10 properties mortgaged. Every lender has their own specific guidelines on how many homes they will lend on for one borrower. Therefore, you are being told two different things by two different banks because their lending guidelines are different. As someone above mentioned it increases a banks risk if they extend themselves too much to one borrower. If something was to happen to that borrower, the lender could stand to lose a lot of money. Many lenders are even changing their guidelines to limit the amount of mortgages that they will lend on to only 4. However, there are some lenders out there who will lend to someone no matter how many mortgages they have as long as they meet their specific lending guidelines. A mortgage broker would probably be best to work with for a situation like this if you are having a hard time finding a lender to work with.Is there a limit to the number of houses I can get mortgages on?
It depends on the mortgage co. Ask them how many you can get. I know certain mortgage companies only allow a fixed number and if you go over that number they will quit lending to you.
nope
Most lenders want to limit their exposure to any one borrower. Ten sounds right. But you can have as many mortgages as the lenders say you can.

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