How Many Financed Properties Does Fannie Mae Allow for Investment Loans?

Fannie Mae will allow up to 10 financed properties when you are buying or refinancing investment property.

If you're a real estate investor growing your rental portfolio, one key question is: "How many properties can I finance with a conventional loan?" Fannie Mae has clear guidelines — and understanding them can help you plan your next purchase or refinance.

Let’s break down the current rules on financed property limits, how they apply to you, and what options are available once you reach the cap.

Fannie Mae’s Limit: 10 Financed Properties

Fannie Mae allows up to 10 financed properties per borrower — including your primary residence and any second homes or investment properties.

That means if you already have 10 mortgages reported to your credit, you’ll no longer qualify for a new conventional loan backed by Fannie Mae, even if your income, credit, and assets are strong.

✅ Important: This limit applies to 1- to 4-unit residential properties, including:

• Single-family homes

• Duplexes

• Triplexes

• Fourplexes

What Counts Toward the 10-Property Limit?

Fannie Mae’s rules count any actively financed residential property, even if it's not an investment. That includes:

• Your primary residence

• Any second homes

• Rental properties or short-term vacation rentals

• Co-signed mortgages (even if someone else is making the payments)

What doesn't count?

• Free-and-clear (fully paid off) homes

• Commercial buildings

• Properties held in an LLC or entity that is not tied to your personal credit (in some cases)

Qualifying With 5 to 10 Properties

If you have between 5 and 10 financed properties, Fannie Mae still allows conventional loans — but the guidelines are stricter.

You must:

• Have a minimum credit score of 720

• Provide detailed documentation of income and assets

• Show reserves (savings) for each property — usually six months' worth of payments

• Prove at least 2 years of landlord experience

These extra steps are meant to ensure borrowers have the financial strength to manage a larger portfolio.

What If You Already Own 10 Financed Properties?

Once you hit the 10-property limit, Fannie Mae will no longer approve a conventional mortgage in your name.

But you still have options:

1. DSCR Loans

Some investors move properties into an LLC and work with lenders that focus on DSCR loans (Debt Service Coverage Ratio) or other non-QM (non-qualified mortgage) products. Local Mortgage offers tremendously competitive terms on DSCR loans.

2. Portfolio Loans

Some lenders offer portfolio loans that are held in-house and not sold to Fannie Mae. These loans often allow more flexibility, including financing for 11+ properties.

3. Pay Off Existing Mortgages

Another route is to pay off or refinance one of your existing loans into an unleveraged (free and clear) property, freeing up a spot under the 10-property limit.

Final Thoughts

The Fannie Mae 10-financed-property limit is one of the most important thresholds for real estate investors to understand. It’s not a hard stop for growing your portfolio — but it does signal when you need to start exploring more advanced financing strategies.

At Local Mortgage in Memphis, TN, we specialize in helping investors understand their mortgage options — whether you're buying your second rental or your eleventh.

Have questions about financing your next investment property? Reach out today to see which loan programs fit your strategy.