OfflineI posted this q on Dean finance center, and the answer is that I have to have 20% down and income proof to get a mortgage. The situation is I already have a mortgage on my house for the full ability of my income.
Everyone who says they have 5 or 10 rentals, can you please mention all the options for a person like me to purchase rental properties? I am sure there is others like me who wants to know this as well.
I appreciate your answers. Thanks in advance!
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good question ab. im in the same boat and would like to know the answer to that question as well.
The financing connection on DG expanding as we go to be able to get people lined up with a wider variety or money/credit situations. Until then, someone will probably be able to give you some good advice on handling this.
I had a similar situation, but this was before everything got really tight, and I was able to go way outside my income threshold on a couple properties by overdocumenting the situation. In my case I had renter agreements lined up and signed, along with their income and credit attached to prove I had legit renters lined up that were covering the mortgage (or at least the bulk of it), to put me back in range.
If you don't already have renters lined, signed on to the rental (contingent that you get it), at a set price, you will have a harder time getting it through if your income/credit doesn't align with the purchase. The situation is kind of a catch 22 in some regards, but in my case my realtor pulled some strings to get someone who was looking to rent to sign the agreements and put them on the paperwork for underwriting. I ended up giving them the first month free since I wasn't going to hold their feet to the fire unless they really wanted to rent it, and marketed the property for both rent and forsale (flip). In the end, the didn't actually move in and I sold it two weeks after closing.
So, there are ways to make this work. Just be careful to not do anything fraudulent, but you can get all of your ducks in a row to prove to the lender your deal is solid. If you don't have all of your ducks in a row, and don't have the money to carry the property without a renter, then you need to do that first anyways so you don't get into a problem.
It is easy to assume you can rent a property no problem, but you may find it is very easy or very hard, so don't make any assumptions, just get it all lined up for both your own financial success and for the lender's peace of mind.
A lot of us are concentrating first on finding properties to assign, and thereby build up some capital. If the lenders see that you have sufficient "reserves" - cash that can be used to carry the loan for 3-6 months after closing - they will be more likely to work with you on the rentals.
Good luck!
Tracey
That is exactly what my lender told me. I need 20% down plus proove of imcome. I was told I need that much down because I intend to rent it. I have really good credit and thought I would get a better option becouse of that, but when it comes to applying for a loan for a rental good credit is not condsidered. So unfair!!!!
I AM IN THE SAME BOAT AS A LOT OF YOU ARE, HAVING THE DESIRE TO PERFORM BUT IS LIMITED TO FIND INVESTMENT CAPITAL FOR RENTAL PROPERTIES.SO all I can do is trust that I find the right deals at 50% to 60% off , put a little elbow grease in , jazz it up,and try to assign for 15% to 25% PROFIT.I might be the forever optimist but I believe that if you can dream it ,visualize it, want it bad enough, then you along with the GOOD LORD, CAN BRING IT TO PAST .SO happen searching and screening.Keep at it. The batle is not for the swift or the strong, but to the man that endures to the end.
To raise some personal cash for working and training I intend to sell off lots of my personal things such as furniture, appliances, MORE LIKE CASH IN THE ATTIC SCENARIO . ANYTHING TO RAISE SOME WORKING CASH THAT'S LEGAL, HONEST, AND ABOVE REPROACH... SO hello gang ,,any ideas to share?
leslinenembhard
I am in the same position. I already have a mortgage on my house. My income is not enough to support another property. I have found a few investors who are willing to put up most of the money. I had to come up with a down payment of 3k for a $42,000 loan.
I already have a few people interested in a rent to own contract.
I found by talking to local investors who know it's a killer deal, they are willing to give you a chance.
My advice is start building a buyers list and talk to as many investors as ytou can.
Thanks everyone for your inputs. I understand most ppl here suggests that I build my capital first by making assignments. I do have a buyers and sellers list already made. But I am not sure I can make deals as I am not a U.S citizen (I live here for 8yrs). I consulted a immigration attorney, who said this is a grey area and hence no answer.
This is the reason I have to buy it for myself and rent out (which I am allowed to do), and not sure about assigning. I posted the same question under " everything else" forum. Lets see, what answers I get. Thanks again.
DGAdmin: In my seller list, I do have houses which are already rented out and they will stay even after selling. But the banks does not consider them for a loan.
This was the respond from my credit union on my request to make bussiness with them.
Dear xxxxxx xxxx
"I forwarded your e-mail to our management and they stated that a commercial lender would be more suitable to your needs and unfortunately we will not be able to assist you. Please keep in mind that for investment properties we require a 20% down payment and out maximum loan term is for 15 years".
Okay can someone establish a DG CREDIT UNION so we could borrow money and pay back @ interest and certain period of time for first timers only. Sorry, just a suggestion.
Cheerss!!!
V.V