Are you a real estate investor? How many properties do you own? Do you have a mortgage on these properties? Well…if you have 4 or more mortgages, then you better be ready to write a check for the full amount of your next purchase. Yes…it does not matter if your credit is good and you can afford another loan…current mortgage lending parameters exclude anyone having 4 or more mortgages from additional mortgage loans. The lenders are afraid of putting too many eggs in one basket. Yea…the same lenders who would have given you a 100%, stated income loan a few years ago will not lend to a well qualified investor now if that investor already has 4 or more mortgages. That is the ridiculous straits in which we find ourselves now because of the excesses of recent years. Loans are hard to get. Even people who can and would repay the loans are having a hard time borrowing money. We know that most investors need to borrow to fund their real estate purchases. So, if loans are not available, purchases stall and the ripple effects of our economic crises continue to spread.

Fannie Mae and Freddie Mac are supposedly condsidering lifting, or in some way modifying, the 4 loan maximum rule. A change cannot come too soon!