Mortgage Blog

Q: I am doing a cash-out loan with agent agent, but the loan
was denied. I have more than 4 properties. But I read your blog,
I rememeber you said it was ok. Could you please explain.

A: For the mortgage industry, if the loan will be sold to
GSEs(Fannie Mae or Freddie Mac), then those loans will
have to follow Fannie Mae guideline(Freddie Mac similar).
Sometimes, we call those guideline as seller's guide.
We will have to follow those guidelines in order to sell
the loan to the investors in the future.

So according to the guideline, if you have more than 4
financed properties, you can not do a cash-out on the
rental property. But you are ok to cash-out on the primary.

So in order to cash-out your loan, you have to find a lender,
a portfolio lender who is going to keep your loan. And I refer
my clients to those banks, they got those loans refinanced, and with no closing cost for those rentals.