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David Gibbons

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I want to buy a 2nd residence/ income/rental property in a good rental market.

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julula

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I have owned for 20 years, have a good to excellent credit rating score.  What are the standards for loans on 2nd homes/rentals? (down payment, need rental history? self employment or career history, debt-income ration)
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May 19 - Portland
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JohnGibbons

Portland / Metro Area

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There are quite a few different options out there.  Basically, you would need to provide proof that your debt to income ratio is solid.  Two years of documentation would be enough.

As far a mortgage rates, you will be paying a higher percentage (1/4 - 1/2+) for a rental property. 

Now is the time to buy in Portland, OR.  I would strongly recommend looking in the North Portland area, there are gems everywhere.
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May 19
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Kelly Gebler, "Kelly the Realtor"

Portland OR Metro Area

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Good morning - besides being a Realtor, I'm also a loan officer.  I checked some scenarios out for you and can up with a options on your financing.  Let's say you have at least a 720 credit score and have documentable income, with a 20% down on an investment property, rates on a 30 year fixed conventional loan are looking like they are roughly 6.25% this morning.  But - if you put 25% down, rates drop down to more like 5.25%.  Big difference and will save you quite a bit of money in your monthly payment and over the life of the loan.

From the Real Estate standpoint - now is an awesome time to be in the investment property market!  My team lists REO's and Pre-forclosure/short sale properties....these folks losing their homes are going to be in the market looking for a decent rental home to move to.  While they may no longer be able to afford their current house payment, they will be able to afford something less and there are folks looking for rentals in all price ranges.  I did some tracking recently and just in Clackamas County alone, there are roughly 480 homes set to go to auction in the next 8 weeks!  Hopefully some will be able to resolve their situation and stay in their homes...but if even 1/2 get sold - that's over 200 displaced families that are going to be looking for a rental.

The need is there and if you have the means and ability to get into this market - you stand to not only begin building a nice investment portfolio for yourself, but you also would be in a position to maybe help some of these displaced families get through these tough times.

Hope that helps!

Kelly
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May 20
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Stephen Fitz - Since 2003, "Katu2FeaturedAgent"

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(local agent)

Financing the home is not much different than purchasing your first home. Only now the bank will of course take into account your current mortgage for your debt to income ratio. Taxes are the main difference in a rental property.

I know of a number of excellent rental properties available right now and work with a great loan officer named Amanda who can get your questions answered.

Let me know if I can help.
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May 19
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Chris Black, "chris black"

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Good Morning,
I am speaking for my local geographic area so I'm not sure about portland. We have been very fortunate in the housing market here in the North Carolina Mountains. Values remain strong and really unless you have a ton of money, only the local banks are willing to take the plunge. They know your local market unike the national banks who have been hurt by California, Nevada and florida losing 50% of their homes values. As long as your credit is 720 or above you should have no problem with a local bank. However your debt to income ratio has to be within their standards. I would call and ask them what their standards are and then put yourself in that bracket. Do not close any credit cards and do not open any new ones. And always try to keep the balances low but not to low where they might cut your limit. I hoped this helped you and if you have any further questions, just ask! Thank You, Chris Black
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May 19
 

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