Posted on: 26th Jan, 2012 02:28 am
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?
As far as I know, you don't need to have anything extra when you plan to buy a rental property.
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.
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.
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%..
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%..
