Posted on: 05th May, 2010 05:55 am
we are almost paid off on our current loan..(a two family home). we want to buy a single family home and keep the two family to rent out... what kind of loan is the best to use, we currently dont have a huge downpayment for the new home.
Hi carcutter,
I would suggest you to pay off your first mortgage and then look out for another loan to buy a new property. If you already have a mortgage on one of your properties, then the lender may not give you another loan to buy a property.
As you do not have a huge down payment, it's better to go for a FHA loan. In this case, you would require to pay a down payment of 3.5%. Also, you would require a score of 620 to qualify for this loan.
Take care
I would suggest you to pay off your first mortgage and then look out for another loan to buy a new property. If you already have a mortgage on one of your properties, then the lender may not give you another loan to buy a property.
As you do not have a huge down payment, it's better to go for a FHA loan. In this case, you would require to pay a down payment of 3.5%. Also, you would require a score of 620 to qualify for this loan.
Take care
once you've paid off your first loan you'll have both a lot of equity you can draw on and also an established good credit history, both of which will help you with a new loan.