Posted on: 09th Feb, 2009 10:48 am
This will be a second house as an investment property. My brother and uncle will live in it, but not me. they will rent it from me. It is in the same county as the one I live in. Is there any way to get a loan that doesn't require 20% down? Is there any way to get a loan that allows extra cash for repair? Thanks.
If it is a single family investor property, 20% is probably the minimum dowpayment.
The reason for that is because of the mortgage "mess' that started in August, 2007 and has carried forward to stricter and stricter guidelines for all mortgages and especially for investor properties.
If subject property is 2 or 3 family, could be worse.
If any way for brother and or Dad to be on the mortgage, you could be nonoccupant coborrower and FHA loan with 3.5% down payment could work. That frees up money for repairs. They can still pay you rent and if you want and title work could limit their ownership to 1% or something small.
This is then an owner occuppied property.
FHA loans have maximum limits by county. I do not know your county nor your state nor the purchase price or mortgage amount.
The reason for that is because of the mortgage "mess' that started in August, 2007 and has carried forward to stricter and stricter guidelines for all mortgages and especially for investor properties.
If subject property is 2 or 3 family, could be worse.
If any way for brother and or Dad to be on the mortgage, you could be nonoccupant coborrower and FHA loan with 3.5% down payment could work. That frees up money for repairs. They can still pay you rent and if you want and title work could limit their ownership to 1% or something small.
This is then an owner occuppied property.
FHA loans have maximum limits by county. I do not know your county nor your state nor the purchase price or mortgage amount.
To follow up with what jveen stated, most banks want 30% down and your interest rate will be quite a bit higher due to it being an investor property.
