Posted by Shambhu Nath on September 13, 2003 at 24:15:23:
Do you cobroker in MN?
thanks
Down Payment on rental home - Posted by M.D.L.D.
Posted by M.D.L.D. on September 12, 2003 at 03:07:36:
Hello All,
I’m rather new to the real estate business, in fact I’ve decided to start buying and renting properties recently. I was wondering what the typical downpayment is on a single family home I would like to rent. I have a high credit score and an income (when combined with my business partner) of about 125,000 dollars a year. The current property we are looking at is about 200,000 dollars and would rent for about 1500 dollars a month. We would like to put as little as down payment as possible. Can anyone estimate what we could reasonably ask for to borrow? We have the capital needed for a 20% down payment, but we dont want to tie up that capital as we have other business interests. I have no interest of buying and flipping a property, but rather build equity over time. Thanks in advance for any help.
Matt
Re: Down Payment on rental home - Posted by JJ
Posted by JJ on September 12, 2003 at 16:48:48:
For rental properties, especially single family homes, if your credit scores are higher enough, have income or bank statements to proof, have cash reserves, we can do 100% LTV. No need for downpayment. There is no mortgage insurance too.
Re: Down Payment on rental home - Posted by jeff
Posted by jeff on September 12, 2003 at 09:42:28:
Try a mortgage broker. I have put 5% and 10% down on investment properties with no PMI. There are some good nonconforming loans out there by private lenders. The interest is higher, but it is tax deductable. I have been contacted by Souther Trust Mortgage that a investor 100% is availible with no PMI. This is not a 80-20, but 1 mortgage. I dont have all the facts, but the rate was under 8%. If you can wait a year for your cash you could put 20% down and then equity line the property to pull your money back out. A equity line is a little above prime so it goes up, but you get the best rate on the first mortgage. The other option is 80-20 with seller finance. Be careful on rates and terms. Balloons, prepayment penalty, and any short term loan that is amortized for long term are things you should avoid. Good Luck