Regulations and Considerations for Borrowers with Multiple Real Estate Holdings
Each Borrower is limited to no more than 10 financed properties. All financed properties count in total, even when the mortgage is not with Spring EQ
Property Ownership Defined:
• Partial or joint ownership is considered the same as total ownership in the property
• Ownership applies to financed properties owned by the Borrower, including any properties the
Borrower owns outside of the United States
• A Borrower who is obligated on a mortgage, regardless of whether they hold title to the mortgaged property is included in this limitation
• These limitations apply to the total number of all financed properties, not to the number of mortgages on the property
Property Subject to Limitations as follows:
Joint ownership of residential real estate (considered to be the same as total ownership of an individual property) = YES
Ownership in commercial real estate = NO
Ownership of a multi-family property consisting of more than four dwelling units = NO
Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if Borrower is the owner of the corporation and the financing is in the name of the corporation or S-corporation =NO
Joint or total ownership of a property that is held in the name of a corporation or S-corporation, even if Borrower is the owner of the corporation; however, the financing is in the name of the Borrower = YES
Ownership in a timeshare = NO
Obligation on a mortgage debt for a residential property (regardless of whether or not the Borrower is an owner of the property) = YES
Ownership of a vacant (residential) lot = NO
Joint or total ownership of a property that is held in the name of an LLC or partnership (Limited or General Partnership or Trust) = YES
Ownership of a manufactured home and the land on which it is situated that is titled as real property = YES
Ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home = NO
Simultaneous Transactions
All new mortgage loan applications submitted for the same Borrower must be underwritten simultaneously as the impact of each transaction upon the other needs to be fully evaluated.