FINANCING RENTAL PROPERTY - Posted by VAL

Posted by Matthew on July 11, 2002 at 17:35:51:

First of all you don’t need to cap everything. I understand your situation is frustrating but there is an answer.
I have a no income program for rental property but the rate is dependent on ltv (the closer to appraisal value the higher the rate) after you have owned the property for 1 year banks and lenders will gladly give you a better rate but thats the skinny on it.the size of your loan, under 50,000, has its add to rate factors.
so please understand the loan side as well- just like when we see credit reports we see only the print until we interview the prospect.

FINANCING RENTAL PROPERTY - Posted by VAL

Posted by VAL on July 10, 2002 at 11:35:49:

MY HUSBAND AND I RECENTLY PURCHASED A SFH IN A MODERATE INCOME NEIGHBORHOOD FOR 35,701 THROUGH HUD. WE PUT SO FAR 15K OF REPAIRS IN THE HOME. WE HAVE A LEASE OPTION AGREEMENT FROM NEW TENANTS WHO ARE ANXIOUS TO MOVE IN, HOWEVER, WE NEED TO FINISH SOME MINOR REPAIRS AND ARE NOW CASH POOR! WE HAVE APPLIED FOR A MORTGAGE BECAUSE WE OWN THE PROPERTY FREE AND CLEAR, HOWEVER, THE BANK SAY NO (DUE TO MY HUSBAND BEING UN-EMPLOYED) AND MY CURRENT SALARY WILL NOT SUPPORT THE ADDITIONAL DEBT. MINE YOU, THE MORTGAGE AMOUNT WE ARE REQUESTING IS 50K (TO CONSOLIDATE BILLS AND FINISH REPAIRS). THE INCOME AMOUNT MONTHLY WILL BE 1K. NOW WE ARE TRYING FOR A MORTGAGE WITH A BROKER AND HE IS DRAGGING HIS HEELS (FOR THE SAME REASONS STATED ABOVE) AND HE IS SUGGESTING APR IN THE RANGE OF 10-12%. ANY ADVICE? WE CURRENTLY OWN OUR OWN HOME WITH TONS OF EQUITY (+) WE OWN ANOTHER SFH THAT IS RENTED AND IT PAYS FOR ITSELF WITH 200.00 MONTHLY PROFIT. WHAT GIVES HERE?