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Higher downpayment required??

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johnny321 Guest	Posted: Thu Jan 26, 2012 3:28 am    Post subject: Higher downpayment required?? Like 0 Dislike 0 I have purchased my home almost 3 years ago; I now want to purchase a rental property. Is there anything that I need to have extra in regard to extra income or higher down payment to make that happen? I was pre-approved for $80500 the first time and didn't purchase my house at that amount. This time I am looking for a smaller priced home. Does my middle score need to be higher the second time around or will the down payment be sufficient enough? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Niicss Joined: 03 Oct 2005 Posts: 4834 Location: New Jersey 508.88 Dollars($)	Posted: Thu Jan 26, 2012 3:48 am    Post subject: Like 0 Dislike 0 As far as I know, you don't need to have anything extra when you plan to buy a rental property. _________________ Good is the Enemy of Great.
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Thu Jan 26, 2012 8:52 pm    Post subject: Like 0 Dislike 0 Hi johnny! Welcome to forums! I agree with what Niicss has said. You don't need anything extra in order to qualify for a mortgage for your rental property. However, you need to have the required credit score and income and show two years of employment history in order to qualify for the loan. Feel free to ask if you've further queries. Sussane
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Thu Feb 02, 2012 1:55 pm    Post subject: Like 0 Dislike 0 johnny - be prepared to learn that you'll need a larger down payment for an investment property than you did for you owner-occupied home. That's standard in the industry, and has been for about as long as lending has been around. Your credit score isn't necessarily required to be higher than it was before, though you'll certainly get better pricing on a loan with a higher score. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Feb 13, 2012 12:53 pm    Post subject: Investor Purchase Like 0 Dislike 0 You may be able to buy a single family investor home for a minimum down payment of 15% of the purchase price. In such a case, you will need a credit score at least 680 in order to get the required private mortgage insurance. To buy a single family investor without private mortgage insurance you need a down payment at least 20%. To buy a 2 to 4 family investor property, you will need a down payment at least 25%.. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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