Lender Overlays Killing Home Sales? How To Beat Overlays

Reason No. 3,982 The Florida Mortgage Firm is a realtor’s best friend.

Many lenders have self-imposed overlays, or “restrictions,” to lending. We just received a call from a buyer who was canceling a contract because his bank told him that he was not allowed to finance more than four properties when purchasing an investment home. This is a lender“overlay” and not a Fannie Mae rule.

We can finance up to 10 properties as investment homes, and there are no limitations to the number of financed homes you can own when purchasing a primary residence.

In short, the realty agent is now happy that her buyer can proceed with the purchase, and the buyer is happy because guess who offered the lower rate and costs?