Real Estate Home Mortgages/Real Estate Advice
Hello I'm a Real Estate investor. I have steady employment as a nurse and I have been working at my job for many many years. I'm currently 58 years old and I own a few houses. I own two houses that are paid out for and one condo that is paid out for. I have one house that I still owe a mortgage one. So a total of three houses and a condo. The mortgage payment monthly is about 3500. I rent out my two houses and condo and I use that to pay the mortgage. With the real estate marketing starting to pick up steam I wanted to buy some additional real estate and rent them out and wait for them to appreciate. The issue is when I go for a loan or try to seek financing they tell me I'm over extended. I have excellent credit above 720 and never defaulted, was late, or unable to make my payments. I never formed a corporation or LLC all is done in my name. I would like to buy one or two additional houses and rent them out before they become really expensive. The price ranges of the houses I'm looking at are 50,000 to 100,000. Sorry in advance if you don't answer these questions, everything I have done so far was based on self research and self planning. Is their a way I can find financing? Should I form a corporation or LLC and is their any tax benefits that I could benefit from or ways to pay less tax on my investments? Thank you for your time.
It is impossible for me to answer any of your questions without reviewing all of your documentation - especially the 2012 and 2011 1040 income tax returns.
This will show the amount of income/loss you are showing on the two rental houses and the one condo.
To qualify for new financing, your income-to-debt ratio, using FNMA income calculation guidelines, would need to be at or below 45%.
I recommend sitting down with a mortgage loan officer and discuss your situation.
If the income is not there, then there is no future mortgages available due to all loans require full documentation; there is no longer stated income loan programs.
I hope I have helped you out.
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here