Yes, batpro. A blanket mortgage would be secureed by all the properties. I believe that it would work the same as far as the tax benefits with the exception of mortgage interests. However, there are better qualified experts wha can answer that question better than I, and I hope they would enlighten us.
I was at a bank the other day and I was told I can not have more then 10 mortgages? Apparently there is some state or federal law against this they told me?
Could someone tell me more about this?
I wanted to get like 20+ houses for steady cash flow. I have 10 right now. What are my options if I can not get more then 10 mortgages? I know I can combine a few mortgages into one but that will only get me a few more houses.
Another possibility is when you get 10 mortgages, obtain a blanket loan to condense those down to one mortgage, or two if you don’t want ypur primary residense included. Then you should stay under the radar. Just my thoughts
The issue is with the conforming mortgages vs non-conforming mortgages. Conforming mortgages conform to the guidelines set down by Fannie Mae and the sister organizations. The maximum number of mortgages they will buy from a lender with the same names on them is 10 between them. Once you hit 10, you have to look at non-conforming loans - ones a lender has to keep or sell on the securities market. The ones they sell require a deeper discount than the ones Fannie Mae picks up and carry a higher interest rate.
I just got mortgages 11 & 12 (including my primary) and the last two require more hoops and were more expensive. If a lender tells you they won’t do more than 10, what they are really saying is that they sell all their loans to Fannie Mae, et. al. and don’t do non-corming loans. You will need to find a lender who does (Greenpoint, WAMU and so on).