Posted by Shane on February 07, 2002 at 21:45:36:
Ted,
You are right this is absolutely not true. The real question is how much of the equity do you need? I would suggest staying at 80% or under. Your rate will be better and you can get favorable terms. The terms are flexable depending on what you are looking for. If you need to email me, I’ll answer what I can. Shane
Borrowing money on a rental property - Posted by Ted
Posted by Ted on February 07, 2002 at 14:21:47:
I currently own a property which I own free and clear and have rented it for the past five years. In the past I have called a few mortgage companies to see if I could take a loan out agaisnt this property and have been told it needed to be my primary residence to get a mortgage. Is this true or am i just talking to conservative banks? I assume this is not true, if so what type of loan will I be most likely to get in terms of length of loan and what percentage of equity would I be able to borrow.
Re: Borrowing money on a rental property - Posted by JFinke KC
Posted by JFinke KC on February 08, 2002 at 15:30:44:
Ted,
I would talk to a mortgage broker that has access to several different programs. There is no reason why you couldn’t get 75-80% LTV mortgage on a non-owner occupied residence. Quite frankly, I’m surprised you got turned down at all.
Good Luck,
JFinke KC
Re: Borrowing money on a rental property - Posted by KC Questions
Posted by KC Questions on February 07, 2002 at 22:23:58:
I did an home equity line of credit on my rental property thru Wells Fargo. They gave me 75% of appraised value, no points, no fees. They told me that depending on the location of the property, they might not have even needed an appraisal. My property did need an appraisal and I didn’t have to pay for it (which means that I am paying for it indirectly from the interest I pay). I am in Kansas City, MO you might have to check to see if they do business in your location.