{"id":987,"date":"2018-06-26T14:36:22","date_gmt":"2018-06-26T18:36:22","guid":{"rendered":"https:\/\/www.encyclopedia.com\/articles\/?p=987"},"modified":"2018-06-26T14:36:22","modified_gmt":"2018-06-26T18:36:22","slug":"how-do-i-mortgage-multiple-properties","status":"publish","type":"post","link":"https:\/\/www.encyclopedia.com\/articles\/how-do-i-mortgage-multiple-properties\/","title":{"rendered":"How Do I Mortgage Multiple Properties?"},"content":{"rendered":"<p>Between 2004 and 2007, mortgage lenders began to ease their standards and started issuing inexpensive mortgages to individuals who had low incomes. Unfortunately, the economy went into a hard downfall and many of these low-income workers found that they could not afford their loans. This led to a large number of foreclosures and spawned the housing bust crisis. <\/p>\n<p>Stricter Mortgage Regulations <\/p>\n<p>The housing crisis took out a few large mortgage lenders. When the dust settled, regulations became stricter for individuals who wanted to buy a home with a mortgage. Lenders started asking for down payments as high as 30 percent of a home&#8217;s total value before they would lend any money. Unfortunately, this type of down payment was too high for many first-time homebuyers and the housing market stayed relatively weak in most areas. <\/p><div id=\"encyc-1836034654\" class=\"encyc-content encyc-entity-placement\" role=\"region\" aria-label=\"Advertisements\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8594935838850960\"\r\n     data-ad-slot=\"1218748607\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/div>\n<p>Purchasing Multiple Properties <\/p>\n<p>Fortunately, stricter mortgage regulations did not hurt individuals who had enough purchasing power to buy multiple properties. In fact, there are no limits related to the number of properties that a person is allowed to purchase with a mortgage. If an individual has an acceptable debt to income ratio, they have the ability to purchase multiple properties without any problem. <\/p>\n<p>Debt To Income Ratio <\/p>\n<p>Each time that a person accumulates debt, it is taken and compared to the amount of income that they make. This ratio is known as a debt to income ratio. It is used by lenders as a measure of a person&#8217;s ability to pay back money to a lender. If a person goes over a specific mandated threshold, a lender believes that it will be difficult for them to pay back their loan. Obviously, if a person keeps buying new properties, this ratio will increase. At one point it will hit the threshold that prevents a person from buying any more properties, but until then, a person&#8217;s buying power is only limited by how large the dollar sign is in their bank account. <\/p>\n<p>How To Buy Multiple Properties Easier <\/p>\n<p>One of the ways that many individuals purchase multiple properties is by not living in any of the homes. If a person chooses to use one of those homes as a primary residence, it limits the amount of buying power that they will have after the debt to income ratio is applied to their situation. Where a person may be only able to afford 2 to 3 houses when they use one of them as their primary residence, they&#8217;ll be able to purchase six or more properties if they don&#8217;t live in any of the homes. <\/p>\n<p>Stable Tenants And Blanket Mortgages <\/p>\n<p>Lenders want to see a history of stable tenants when they make a decision on supplying funds for additional mortgages. Once a person has accumulated a large number of rental properties, a lender may allow them to use blanket mortgages. Typically, this is used by lenders when they are dealing with property management companies that have large-scale rental operations. However, if a person qualifies for a blanket mortgage, a lender will probably help fund their purchase price.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Between 2004 and 2007, mortgage lenders began to ease their standards and started issuing inexpensive mortgages to individuals who had low incomes. Unfortunately, the economy went into a hard downfall and many of these low-income workers found that they could not afford their loans. This led to a large number of foreclosures and spawned the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,19],"tags":[27],"class_list":["post-987","post","type-post","status-publish","format-standard","hentry","category-business","category-legal","tag-1806-99"],"_links":{"self":[{"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/posts\/987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/comments?post=987"}],"version-history":[{"count":1,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/posts\/987\/revisions"}],"predecessor-version":[{"id":988,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/posts\/987\/revisions\/988"}],"wp:attachment":[{"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/media?parent=987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/categories?post=987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.encyclopedia.com\/articles\/wp-json\/wp\/v2\/tags?post=987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}