Don't throw bricks yet!!!
Many people here know a little bit here or there. I am not saying I know everything. But when I read the post from autumnmoon, I feel that I have the obligation to correct some basic concepts. DO NOT 以讹传讹.
All the conditions listed at autumnmoon's post are for an regular investment loan. If you don't meet these conditins, you will have a difficult time getting the loan. Possible? yes. High rate? yes. High cost? yes.
I've been on both sides of the mortgage loan business. As a consumer, I got 10 loans. My wife got 10 loans. As a loan officer, I cannot loan anybody for the 5th loan. But I know someone can.
Here is the reason.
My wife and I got the loans before 2008. At that time the guideline of Fannie Mae and Freddie Mac limited the number of loans to 10. Beginning Aug 1, 2008, the guideline changed to 4.
So right now most of lenders have the limit of 4.
Then why from time to time do we hear about somebody getting a 5th loan?
In order to know the answer, we need to undrstand the roles that Fannie Mae and Freddie Mac play. They are the major buyers of the secondary mortgage market, so the lenders who want to trade the mortgage at the secondary market have to follow Fannie Mae or Freddie Mac rules.
Ok, is this clear?
The lender who does not want to trade your loan at the secondary market can lend you the 5th loan or 6th loan etc. It will come with a cost.
Me, as a broker, I don't do the fifth loan not because I can not find a lender, but because it is not worth my time to do so. Since my rates are always 1/8 or 1/4 lower than anybody in my state (Virginia) I have many regular loans. So I am generous enough to let some other loan officers to do the fifth loan.
Now you can throw your bricks if my post offends you.
