That's why I said all your knowledge is book knowledge

Recent Fannie Mae guideline has reduced the number of mortgages each individual can take to 4 houses. If a buyer has already had 4 houses, and he wants to buy a 5th one, even if a bank wants to do this business, it can't because Fannie mae guideline doesn't allow it.

Why most banks will have to abide by Fannie Mae guideline? because after the loan is made, Fannie Mae will buy the loan from the bank and bundle that and sell to secondary market.

Now you understand why someone wants to find private loans. Not because bank see the risk is so high and doesn't want to do the business, all because currently the regulation is so strict that handicapped the banks.