| Tips for Investment Property Owners |
|
|
|
|
|
kevin
Member
Cash: $ 4.75
Posts: 21
Joined: 05 Jul 2005
|
| Tips for Investment Property Owners |
 |
|
With the real estate market taking a dip, many investment property owners are looking to take advantage of the future boom. Having many potential and current property owners inquire into 100% financing, here are a couple of guidelines that may be helpful:
-If you currently own a home, and are looking to buy an investment property, first make sure it can be qualified as a second home. As a second home, it generally has to be located around a resort type of area, river, lake, or generally rule of thumb, located in another state. If the property is within 5-10 miles of the owner occupied home, lenders will not classify it as a second home. The importance of getting a home to classify as a second home, is merely a lower interest rate will apply, generally 1.5% lower.
-For 100% financing on a N/O/O(Non-owner occupied), lender are typically looking for FICO score of 660-680, with full documentation of the income: 2 Years of tax returns or W2's. 12 months Bk statements will not be accepted. FICO scores of 700+ are necessary for a stated income loan, where as long as you are employed, you can state your income high enough to qualify within reason.
-The most important item regardless of full/stated income, is verifiable assets. Any lender will want to see assets such as savings/checking account, 401 K, stocks or bonds, etc.
-Rental Income- Always make sure to have a rental agreement ready because 75% of the rental income is taken into factor to help lower your DTI. Even if the renters haven't moved in, make sure you do get a rental agreement because it may help if your income is a bit low to qualify you.
-20% Downpayment- Where most investment property owners will take advantage of 100% financing, a smart move to avoid capital gains is to roll over the money and re-invest into the property. By putting down 20%, it helps keep the payment down by eliminating the high interest second mortgage that is involved in 100% financing.
|
Wed Apr 05, 2006 5:41 pm |
|
|
coltster45
New Member
Cash: $ 1.80
Posts: 9
Joined: 10 Aug 2006
Location: Northern California
|
I have a home in californ and bought a duplex in north carolina and got a second home loan for it even though I rent it out.
I want to get another 4-plex on the same block.
Can I get another second home loan with no prob? or will the bank look at me funny.
I get positve cash flow from my rental 
If anyone has insight I would love to know
|
|
Thu Aug 10, 2006 4:40 am |
|
|
kevin
Member
Cash: $ 4.75
Posts: 21
Joined: 05 Jul 2005
|
| response |
|
|
If the property was located other than CA or NC, then I would say you might have a chance, but since its in the same area as your other NC property, it is going to be considered as an investment property unless you use your wife's name on this property. Rates are 1.5% higher than owner occupid and second homes. How lenders can tell, is by title so if you are able to use your wife, then I would highly suggest it.
|
|
Thu Aug 10, 2006 7:10 pm |
|
|
coltster45
New Member
Cash: $ 1.80
Posts: 9
Joined: 10 Aug 2006
Location: Northern California
|
how about you overlook the other property in nc and you can loan me on a new property- I wanted to use the other as a second home- but I can;t get the renters out so I have to buy another one.
|
|
Fri Aug 11, 2006 4:35 am |
|
|
|
