Posted by Mike (NY) on August 21, 2003 at 15:23:34:
Have you had a tri-merge done on both yourself and your wife? If you are going to shop for a lender I highly recommend you doing this, and providing it to whichever brokers you choose so they each do not have to run your credit. You will save your credit score, and quite possibly any chance at a good rate.
If you have fairly good scores it should be possible to do 90%-95%. You will still need 5% down, plus closing costs for this scenario unless you are able to negotiate a sellers concession for part of the closing costs. Feel free to contact me.
The only technique I want to utilize in real estate is buy and hold with multi-family properties. I just bought a home for my wife and I and have a little bit of cash reserves. I am in a sales career less than 2 years and my wife has a salary position. What are mortgage brokers going to be looking for? Will they finance my first deal without any prior real estate experience except our personal residence? Am I kidding myself if I think we could get a high LTV?
Re: Multi-Family Financing… - Posted by Frank Notaro
Posted by Frank Notaro on August 24, 2003 at 19:51:02:
I am doing the same thing. I bought a 3-family home in March with 90% LTV, and I am trying to buy another 3 family for the last 2 weeks (still trying to agree on a price). My mortgage guy told me that I would qualify for a 95% LTV but the interest would be high.
I think I am going to put 10% down to save $$$ on the mortgage payments.
The banks are looking to for a good credit rating, and the monthly rental income. The bank will only apply 75% of the rental income toward the mortgage.
For example: The first house I bought had rental income of $4000 per month. The bank will only apply $3000 per month (75%) toward the mortgage. If your mortgage payment is $3500 and 75% of your rental income is $3000, then the bank will base your loan on your ability to pay $500 per month ($3500-$3000).
The mortgage on my house is $2900 per month, so the rental income covered the whole mortgage.
Posted by Dion Huey on August 22, 2003 at 04:47:37:
Hi Jim!
You had mentioned that the house had a sign on it that mentioned that it had a problem with mold and mildew, right? I have met some people that have run across this problem as well. After you perform your due diligence and if you decide to purchase he property, let me know. I don’t know if what my friends used will help solve your mold probem or not, but it is certainly worth a try! Just let me know!