Answers (15)
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
So instead of 20% down you are going to offer a No Doc loan with 40% down and a rate above 10%....Sign me up!
NOT!
NOT!
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
Not bitter at all! Annoyed by folks that offer advice that don't really know what they are talking about! Sometimes it is best to say I am not sure about that...let me check on it, and I'll get back to you. Rather than talking out your backside.
Folks need facts not fiction.
Folks need facts not fiction.
- Massey Kouhssari, "BankerBroker"
- Contributions:83
You are going to charge your parents $250 above your cost???? You are a mean land lord... haha
20% dwn sounds fair for a rental. If you are a wage earner there are also programs that you might be able get a NO DOC loan, if you qualify. Its good time to buy real estate.
20% dwn sounds fair for a rental. If you are a wage earner there are also programs that you might be able get a NO DOC loan, if you qualify. Its good time to buy real estate.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
sfin,
As Andrew stated. See link below. Scroll down to B2-3-01 Page 229.
https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel092010.pdf#page=195
Happy funding, Rudi
As Andrew stated. See link below. Scroll down to B2-3-01 Page 229.
https://www.efanniemae.com/sf/guides/ssg/sg/pdf/sel092010.pdf#page=195
Happy funding, Rudi
- MoniqueU
- Contributions:114
Andrew, you are such a bitter LO.
SFIN:
how old are the parents?
have they tried a reverse mortgage? they don't even look at your parents credit.
just give them the money to put down.
and they never have to make a payment.
SFIN:
how old are the parents?
have they tried a reverse mortgage? they don't even look at your parents credit.
just give them the money to put down.
and they never have to make a payment.
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
If you can afford the payment and your inlaws are "elderly" whatever that means Fannie Mae will allow a child to purchase a home for their parents to assit them in afoording a home they could not otherwise afford.
Section B2-3-01 Occupancy Type Requirements of the Fannie Mae Guide
I will agree that calling a home a second home that is not a second home is a really bad idea...I have no clue what Monique is talking about...if the lender does anything they will call the note due in full, with the acceleration clause of the mortgage. To prove that your intention to use the home as a second home was not your intention when you closed would be a difficult case to prove so the reality if nothing would likely happen to you. The loan officer that was aware of it on the other hand could end up with all sorts of issues if the lender ever questioned it. Not worth the risk in my eyes.
Section B2-3-01 Occupancy Type Requirements of the Fannie Mae Guide
I will agree that calling a home a second home that is not a second home is a really bad idea...I have no clue what Monique is talking about...if the lender does anything they will call the note due in full, with the acceleration clause of the mortgage. To prove that your intention to use the home as a second home was not your intention when you closed would be a difficult case to prove so the reality if nothing would likely happen to you. The loan officer that was aware of it on the other hand could end up with all sorts of issues if the lender ever questioned it. Not worth the risk in my eyes.
- wetdawgs
- Contributions:39585
As it is a rental, there aren't many options besides fraud.
- MoniqueU
- Contributions:114
look at a cheaper home so you have 20% down.
a second home has to be lived in and be put on a tax return as second home. so if a year later they look and see it is listed with all investor deductions. The bank may hit you with the 10% and an investment home fee.
remember fannie mae and freddie mac are buying all the loans so it is a major federal problem you will have.
They don't just slap your hands any more.
a second home has to be lived in and be put on a tax return as second home. so if a year later they look and see it is listed with all investor deductions. The bank may hit you with the 10% and an investment home fee.
remember fannie mae and freddie mac are buying all the loans so it is a major federal problem you will have.
They don't just slap your hands any more.
- John Dietel, "MN Broker"
- Contributions:84
Not knowing your state, or laws, I would explore the second home option with your mortgage agent. In-laws are family, and may be subject to different laws, than if you are renting to non-family renters.
Also, have them sign a lease, and then you may be able to use that income in your financing.
Also, have them sign a lease, and then you may be able to use that income in your financing.
- Deborah Garvin, "DeborahGarvin"
- Contributions:449
First, a second home does not have to be 250 miles away! There are specific criteria that must be met (bona fide second home feasibility). Second, no ethical mortgage professional is going to help a consumer commit fraud by submitting an investment property as a second home. And, you would not want to work with the unethical as the lender will have you sign documentation that the property is, in fact, a second home and not investment. Oh: There is a due and payable clause if fraud is detected and there can be civil and criminal charges.
The home path suggestion is a far better answer if you are looking for a lower down payment.
The home path suggestion is a far better answer if you are looking for a lower down payment.
- david kuruvila, "ahlcorp"
- Contributions:1
you could be purchase as 2nd home with 10% down, if it is 250 miles away.
- Chris Milker, "CMG Financial"
- Contributions:300
Then I would look for a Home Path home to purchase.
- sfin
- Contributions:3
They are going to rent. I will be charging mortgage plus 250 for incidentals and the unexpected.
- Carl Henker, "Carl Henker"
- Contributions:785
Look for a Home Path Home to purchase and you can buy an investment property with as little as 10% down. Use the link below to look for home in your area.
HomePath
For investment properties 20% down in the minimum for conventional financing.
HomePath
For investment properties 20% down in the minimum for conventional financing.
- Chris Milker, "CMG Financial"
- Contributions:300
Are they really going to rent? Or are you going to charge the exact cost of the mortgage payment?
I would like to buy a house for my in laws to rent from me. The bank wants 20% down? Options?
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