11+ Financed Properties — Past the Conventional Cap
Conventional Fannie / Freddie investor financing stops at 10 financed properties. We don't. DSCR per-property, portfolio loans, and blanket structures handle properties 11 through 20+ for serious portfolio investors.
Quick answer
- Why this page exists: Fannie Mae and Freddie Mac cap conventional investor financing at 10 financed 1–4-unit residential properties per borrower. Past 10, conventional refuses the file regardless of how strong it is.
- Our path past the cap: DSCR on each individual property + portfolio programs designed specifically for investors with 11–20+ financed properties.
- Typical max: some portfolio programs accept 20+ financed properties; specific exceptions go higher case-by-case.
- Min FICO: 700+ on most 11+ programs.
- Reserves: tighter than DSCR alone; expect 6–12 months PITIA per property in some configurations.
- Closing structure: LLC closings standard, often preferred for portfolio-scale investors.
The 10-property cap, in plain terms
Fannie Mae and Freddie Mac will guarantee residential investor mortgages only up to a limit. That limit is 10 financed 1–4-unit residential properties per borrower (subject + 9 others). Cross 11, conventional shuts off — even with a 780 FICO and a 50% LTV file.
This isn't an underwriting decision your loan officer can override. It's structural to the agency programs themselves.
What still doesn't count toward 10
- Properties owned free-and-clear (no financing)
- 5+ unit / commercial properties (different loan category)
- Properties owned by an LLC where you don't have a personal guaranty
- Vacant land
- Properties on a HELOC only (no first-lien financing)
Many serious investors keep some properties free-and-clear specifically to preserve the 10-financed-property "slots" for the highest-leverage opportunities. We help model that strategy.
The path past 10
The first 10 use conventional. Properties 11+ use one (or a combination) of these:
| Path | Best for | Property cap |
|---|---|---|
| DSCR — single property at a time | Each property qualifies on its own cash flow. Stack as many as the underwriting allows. | None per loan; some programs cap at 20–25 per borrower. |
| Portfolio loan — multiple properties under one note | Portfolio investors wanting to consolidate financing across multiple rentals. | 5–25 properties per portfolio loan typically. |
| Blanket loan | Portfolio investor with many low-balance properties — single loan, multiple liens released as properties are sold. | 10–50+ properties. |
| Commercial / small-balance commercial | Investors moving to 5+ unit and small-balance commercial properties. | Different category — no residential cap applies. |
Worked example — investor at property #14
Investor owns 13 financed rentals — 10 conventional Fannie/Freddie, 3 DSCR. Wants to acquire #14 — a Phoenix duplex, $480K purchase, 25% down, expected $4,200/month combined rent, $3,400/month PITIA.
- Conventional: not eligible — investor is over the 10-property cap.
- Single-property DSCR: eligible — DSCR = 4,200/3,400 = 1.24. Cleanly qualifies.
- Result: $360K DSCR loan funds, investor closes property #14 in his existing LLC. Portfolio rolls to 14.
What changes operationally past 10
- LLC closing becomes standard. Portfolio investors at this scale typically use one or more LLCs for liability separation. DSCR programs make LLC closing routine.
- Underwriting attention shifts to the property, not you. Personal DTI, employment continuity, and individual income matter less. Property cash flow, reserves, and FICO matter more.
- Reserves model changes. Conventional requires reserves on every financed property in the portfolio. DSCR generally only requires reserves on the subject. The math is more favorable past 10 in some respects than at 8–10.
- Pricing premium is real but reasonable. DSCR / portfolio at 11+ typically prices 0.50–1.25% above conventional. The "I can keep buying" premium is usually worth it.
FAQ
Does the 10-property cap apply per LLC or per person?
Per person. If you have a personal guaranty on a property's loan — even if the property is titled in an LLC — it counts toward your 10-property cap. Properties in an LLC where you don't personally guarantee don't count, but most loans require a personal guaranty.
Can I move properties off the cap?
Two ways: refinance one of the 10 conventional loans into a non-personally-guaranteed loan (rare structure), or sell one property to a different LLC structure that breaks the personal guaranty. Neither is trivial — talk to a CPA + attorney before structuring.
Are non-financed properties (paid-in-full) counted?
No — only financed 1–4 unit residential investment properties count toward the 10. Properties you own outright don't reduce your remaining capacity.
What if I'm at exactly 10?
Your next acquisition needs to use DSCR, portfolio, or commercial financing — not conventional. We've helped many investors make this transition cleanly; the timing usually doesn't slow the deal.
Are there programs that allow more than 20 financed properties?
Yes — certain non-agency portfolio and small-balance-commercial programs allow 25+, sometimes higher. Pricing and reserve requirements are steeper but the structure is real.
Curious if 11+ Financed Properties — Past the Conventional Cap is the right fit?
Bring the property details — we'll model real numbers in 20 minutes.