Profile picture for benjaminbenjamin

investment homes

What can i expect with trying to get finaced for investment/rental homes.  I own 2 homes right now and the one i am renting was my former personal home so i have 5.75% on that home locked.  any advice on getting a low interst rate or anything else i need to know..

  • August 16 2008 - US
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Answers (10)

BB,

You will pay INV rates/pricing for your mortgage.  I am unsure as to your definition of low interest rates, but versus primary residential rate/pricing... the "add-on in points is 1.5 points up to 75%... 2 points from 75.01-80%... 2.5 points above that..  That is the difference in pricing.  Hope that helps.  Same rates...different/more expensive closing costs to obtain it (higher risk from FNM).. Keep rockin' and good luck.

  • August 16 2008
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Yes and you will need a minimum of 15% cash money down, and usually 20% in declining markets like CA, NV, FL etc. Strong credit is a must and so is fully documentable income.

  • August 16 2008
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Like Sunrise mentioned, 155 to 20% down.  You will need good scores: 680 or better.  Low DTI ratios, strong reserves in the bank.

Rate will be whatever the Conforming rate if you want to pay about 1.50 to 2.50 points depending on LTV like MW mentioned.

 

  • August 16 2008
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Profile picture for Chris Corica

I don't know how other states compare but can tell you in New York as of last thursday PMI guidelines have changed. The last of the companies that went down to a 680 fico are now at a 720. A 720 score with DU approval will allow you to only put 10% down. Anything under a 720 requires 20% down payment as there is no pmi available.

  • August 16 2008
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I also hope you claim your rental income on your taxes and don't write it all off or claim negative income. Otherwise, you would have to include all 3 in your debt ratios.

  • August 17 2008
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i am a 757 with low DTI, so qualifying won't be a problem.  I guess i was just hoping that there might be a better deal..

  • August 18 2008
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Nope.  There is no free lunch as they say.  We could use more high score investors like you though and the housing correction might stabilize.

  • August 18 2008
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Profile picture for benjaminbenjamin

well i talked to my local credit union (in oklahoma) and they do .25 rate bump on investment homes.  so 6.85 if i did it today with 20% down...

  • August 19 2008
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DONE and you are blessed.  CU it is then... CONV loans are not priced that way.. They are priced on the 1/8ths... 6.875% for example.  You are blessed and you are done.  Shop no further, do not get knocked from your path to your CU.  Good luck in your INV and thanks for sharing.

  • August 19 2008
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yes i am blessed, i work in sales and my accouts are CU and i know they are alot more flexible (sometimes) with finacing then banks....

  • August 19 2008
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