Fannie Mae’s 5-10 Properties Program Explained

fannie mae's 5-10 properties program explained

What is the Fannie Mae 5-10 Properties Program?

The Fannie Mae 5-10 Properties Program is a financing program for highly creditworthy investors looking to build their real estate portfolio beyond four financed properties.

After the 2008 real estate crash, Fannie Mae limited the maximum number of allowed conventionally financed properties to 4. In 2009, in an effort to boost the housing market, they raised this limit to 10 and introduced the 5-10 Properties Program.

Fannie Mae’s 5-10 Properties Program is ideal for people with growing portfolios. It may present great opportunities for experienced investors who have multiple successful house hacks under their belts.

Fannie Mae 5-10 Properties Program Requirements 

In order to qualify for Fannie Mae’s 5-10 Properties Program, you must own between 5 and 10 financed properties and meet the following requirements: 

  • Minimum credit score of 720.
  • 25% down payment required for single-family homes.
  • 30% down payment required for multi-family properties between 2 and 4 units.
  • No late payments on any existing mortgages in the past year.
  • No bankruptcies or foreclosures in the last 7 years.
  • Must have 6 months of PITI (principal, interest, taxes, and insurance) cash reserves for each loan.

You’ll also have to present two years of federal tax returns that show rental income from all of your rental properties.

When Should You Use the Fannie Mae 5-10 Properties Program? 

The Fannie Mae 5-10 Properties Program is great for highly qualified investors with growing portfolios, especially those who have a few years of experience with successful house hacks. 

As long as you have a good credit score, you should be able to finance your first four properties with conventional loans.

After four properties, restrictions and requirements can be tough to meet.

The Fannie Mae 5-10 Properties Program is meant for highly qualified, creditworthy investors interested in owning more than four investment properties. 

Not every bank will finance several mortgage loans or partake in Fannie Mae’s 5-10 Properties Program. You will likely need to shop around if you’re looking to finance multiple properties.


How many house hacks can I do?

You can most often finance up to 4 homes with a conventional mortgage.

However, programs like Fannie Mae’s 5-10 Properties Program will allow you to take out up to 10 mortgages. It is important to note the requirements might be more difficult to meet after the first 4 properties since those loans are seen as riskier by lenders.

What are the credit score requirements for Fannie Mae’s 5-10 Properties Program?

The minimum required credit score to take out a loan under Fannie Mae’s 5-10 Properties Program is 720. On top of that, you can’t have any bankruptcies or foreclosures within the past seven years.

Why don’t all lenders participate in Fannie Mae’s 5-10 Properties Program? 

Even if you qualify for the program under Fannie Mae’s guidelines, it might be difficult to find a lender that will participate.

Owning more than four financed properties may make you seem like a greater risk in the eyes of a lender. And it will take some time for them to review all of the paperwork attached to your properties.

That said, there are banks out there that are willing to assume the risk and do the extra work for highly qualified investors. 

If you’re intent on expanding your investment portfolio, don’t lose hope. Shop around. Consult as many lenders as possible. You’ll find the one to meet your goals.

Can you cash-out refinance under Fannie Mae’s 5-10 Properties Program? 

Yes, Fannie Mae updated their policies in 2016 to allow owners of five or more properties to pull equity out of their investments.

In order to refinance your investment properties you must have a minimum of 30% equity in the home. That applies whether it’s a single-unit or multi-unit property.

Can I participate in Fannie Mae’s 5-10 Properties Program with a history of bankruptcy or foreclosure? 

fannie mae's 5-10 property program no bankruptcies requirement

No, you cannot qualify for the program if you have a history of bankruptcy or foreclosure in the last seven years, and that requirement is strictly enforced.

What are some other ways to finance multiple investment properties?

Some other options for financing more than four properties are through blanket mortgages and portfolio loans.

Under a blanket mortgage, you may finance multiple properties through the same mortgage. The maximum number of properties you can finance under a blanket mortgage is up to the lender.

A blanket mortgage generally cannot finance a primary residence.

Portfolio loans are large-scale blanket loans that long-term customers of a particular lender can often use. They do, however, come with strict requirements, and high interest rates and fees most often.

The number of properties they will finance is entirely up the lender.

What is a good strategy for getting started in real estate? 

Renting out extra space in your primary residence, also called house hacking, is an excellent strategy.

House hacking allows buyers to take advantage of lower interest rates and down payments associated with owner-occupied financing. That makes house hacking an excellent, low barrier strategy for getting started in real estate.

What financing options are available for first-time house hackers? 

If you’re interested in growing your portfolio in the future, but you’re just starting out with house hacking, there are plenty of financing options available for your first few properties. 

For example, FHA loans are popular among first-time homebuyers looking for a primary residence to house hack. These government-backed mortgages come with relatively low down payments, competitive interest rates, and flexible lending requirements.

If you have a good credit history and substantial savings for a down payment, you might also consider a conventional mortgage, which also offers competitive interest rates for highly qualified lenders.

This website, and any communication stemming from it, should not be taken as financial or legal advice for your specific situation. Consult directly with a licensed financial professional should you need investment advice and consult directly with a licensed attorney directly should you need legal advice. Assume all links are affiliate links. I am an Amazon affiliate.

Jack Duffley

Jack Duffley is a real estate investor and attorney based in Houston, TX.

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