Posted on: 22nd May, 2009 04:24 pm
My wife and I are looking into purchasing a 2nd home that we would rent out to her parents.
My question is, how tough would it be to get approved for a loan on the rental property and would we be able to get a reasonable rate? The house would be around $140K and we could put down 20%. How tough is it today to get financing on a rental home?
We both have credit scores around 800, make 125K a year, and have no other debt than student loans. We currently owe $200K on a house worth around $225K.
My question is, how tough would it be to get approved for a loan on the rental property and would we be able to get a reasonable rate? The house would be around $140K and we could put down 20%. How tough is it today to get financing on a rental home?
We both have credit scores around 800, make 125K a year, and have no other debt than student loans. We currently owe $200K on a house worth around $225K.
I am not gettingyour query.
As you specified you want to buy 2nd home right.... and after that you will give it to rent to your wife's parent then where is the problem for rental loan. You will purchase the home 1st and after purchasing you will gve to rent then i think there will not be problem.
Please right specific if I got misunderstood your query.
As you specified you want to buy 2nd home right.... and after that you will give it to rent to your wife's parent then where is the problem for rental loan. You will purchase the home 1st and after purchasing you will gve to rent then i think there will not be problem.
Please right specific if I got misunderstood your query.
Hi chmg
As you want to rent out the property, it would be considered as your investment property. If you have a good credit score and stable income, lenders would readily give you a mortgage. I appreciate that you have a credit score of 800. I hope, you don't have any other negative items on your credit report apart from the student loans.
I would suggest you to speak to the lenders about getting a mortgage. This will help you know the rates and terms prevailing in the market. You can also speak to the lenders of this community and seek consultation from them (Check out the link given by Jenkin). This will let you know whether you qualify for the loan or not.
Thanks.
As you want to rent out the property, it would be considered as your investment property. If you have a good credit score and stable income, lenders would readily give you a mortgage. I appreciate that you have a credit score of 800. I hope, you don't have any other negative items on your credit report apart from the student loans.
I would suggest you to speak to the lenders about getting a mortgage. This will help you know the rates and terms prevailing in the market. You can also speak to the lenders of this community and seek consultation from them (Check out the link given by Jenkin). This will let you know whether you qualify for the loan or not.
Thanks.
you are qualifying all the conditions & therefore can get good interest rate.
an investment property is not a second home, by definition. you will pay additional costs in connection with your mortgage for purchasing an investment property. be prepared for that.
In addition, your down payment requirements will most likely be different than a second home.
Your & your wife's credit score is pretty good.In my opinion if the person who is supposed to avail the facility of the house (her parents.) if they can be added in the equity then surely you will be able to get the loan.
As you currently owe 200 K on the 225 k property so still it is a big burden on your head.
keep in touch. :arrow: :arrow: :arrow:
As you currently owe 200 K on the 225 k property so still it is a big burden on your head.
keep in touch. :arrow: :arrow: :arrow:
manoj: HUH?