Getting Started, Need Financing Answers
We are just about to sell our second sfh this time we want to buy 2 sfh within a short time of eachother. One to live in and fix up the other to flip or fix and rent. We have excellent credit will have some start up capital 30-45K We dont have a problem getting first loan(stated income) what's the best way to get second loan, use second lender? I've been concerned about asking current lender for loan on second home since one will not be primary residence. Do they care? any suggestions or comments appreciated. :-D
what they care about is your ability to pay base on your loans to income ratio and cash on hand.......km
Thanks for the reply. Will a single lender approve two loans that are stated income loans with only one property being primary residence? Or is it better to use two seperate lenders?
There is no reason why you can't use the same lender. The lender is always going to ask if this is owner occupied
Of course they will lend you money on an additional investment home! This is what mortgage companies do! They do not care how many home you have as long as you properly disclose which 1 is the primary and which 1's are the rentals (have cash flow). If the investment needs a lot of repairs then you will most likely need to get a private (hard money) loan.
There are private (hard money) lenders who lend up to 70% of the After Repaired Value.
Example:
Price: 50k
Fix-up: 20k
After Repaired Value: 100k
70% of 100k = %100 of buy & fix (70k)
In this scenerio you will not have to spend any of your own money to fund on the loan. The loan must me on an investment home only, not your primary residence.
Good luck
Good deal thanks.. 8-)
You can definitely go back to your current lender. With excellent credit and some assets for reserves you should be able to get a loan at 95% ltv, or possibly 100%, stated income on a non-owner occupied loan with the right investor programs.
I guarantee your lender will be happy that you asked!
Sweet. Thanks again. :-D
i look at lenders like i do any person or business that i am dealing with. i search until i find a person that i "click" with, build a relationship with give them repeat business. then dealing with them gets easier each time..........km
True. I /We have worked with this lender on our first,current and pre approved for our third sf home.
We really like this lender and our loan officer. Easy qualify low rates and fast closing, ten days on current and first.
Since I feel were shifting from being the great responsible borrrowers (wich we will continue to be) to in essence becomming land lords and investors wanting to use our loan with them to make money for us. They might expect more in the way of security or I don't know what... anyway thanks for all the great encouragement, keep it comin.
just keep "beating the bushes" and it will happen......km