Real Estate Home Mortgages/Real Estate Help Please

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Question
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.

Answer
I don't know who all you have talked to and what your income and liabilities outside of this are in order to figure a debt ratio but it sounds like from what you are hearing, it is too high. If your ratio is too high that means about 95% of the lenders (conforming lenders) will not lend to you.

There is not a lot of appetite for small loans among loan officers because of the movement of the lending model to fixed "basis point" compensation where they would only make on average, a few hundred dollars on a $50000 loan and $500 to $700 on a $100000 loan.

Quite frankly, there is way too much business right now with first mortgage refinances and purchases of owner occupied where the loan amounts are higher and the qualifications is easier for them to look at anyone that does not readily qualify now.

I'm sorry if this really does not help. For a more specific answer, I would recommend applying with a local broker and getting them to tell you what your best course of action is if at first they can not help.

I would check with a local "community bank" or credit union that lends their own money.
About Real Estate Home Mortgages
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

Real Estate Home Mortgages

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Wade Conway

Expertise

Conventional Mortgages, FHA Loans, Credit Questions, Qualification, Credit Repair, Credit Score, Loan Types, Interest Rates, Market Movement, Lock or Float, Mortgage backed Securities, Federal Reserve, Secondary Market, Brokering, Lending

Experience

10 Years in the industry, 3 as a Branch Manager for a major US Broker and 1 as a Branch Manager for a top US lender. NMLS ID 157765

Organizations
NAMB Brokers Outpost Mortgage News Daily Bill Sparkmans Circle of Champions Real Estate Investors of Nashville

Publications
Nashville Real Estate Investors www.reintn.net www.brokeroutpost.com www.ascentmortgageplanning.com www.wadeconway.com Mulitiple Blogs have reposted my writings. You can go a Google search for them

Education/Credentials
BA Texas Tech Political Science Mortgage Planner Broker Outpost Inner Circle

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