Investment Property Mortgages
I am interested in purchasing a condominium to rent in Florida. I was wondering what the minimum down payment is for non-owner occupied investment mortgages. Any advice would be appreciated. 8-)
Actually the down payment would depend on what you qualify for. There is no set amount across the board. You should call your broker or lender and see what you qualify for.
Lori
[addsig]
Try and have your Mortgage Broker structure it as a Second Home, not an investment prop
Quote:
On 2004-03-31 16:45, KnowledgeJunkie wrote:
Try and have your Mortgage Broker structure it as a Second Home, not an investment prop
Why do you recomend this?
Not a lot of difenence in rate and you could not use rental income to off set the mortgage.
So why recomend loan fraud?
Most lenders have an 80% ratio. However, there are many loan programs that offer higher LTV's with corresponding credit and reserves (even 100%). I have found that lenders that provide the highest LTV loans require that out of state investors either have a rental agreement upfront or a management company.
Homes located beyond 20 miles of the primary residence (especially in vacation towns) qualify to be 2nd homes. Whether you choose to declare it a 2nd or investment is up to you and your conscience. I’m sure that many brokers would not see any problem with calling it a second. However, I have advised against it. 1 out of ten loans are audited (even then they probably would not know). I could safely bet that 90% of investment properties (assuming that it is the only investment property) that are over 20 miles away are declared a 2nd home. I’ve actually had AE’s from lenders recommend decaring investment prop's as a second to get a better rate.
Sounds like you are an honest person and will take the right path.
Who knows, depending on what your DTI is you may not qualify without the rental income. I’d look into it.
Good luck!
Oh yeah! There is a considerable differance in interest rates for a 2nd and investment. Even more so if it is multi-unit. Of course some people care little about a .25% or .375%.