Real Estate Home Mortgages/investment property

Advertisement


Question
I want to purchase an investment property but our credit isn't good enough and we don't have the 20 % down. There is this nice property that we want to buy to rent as we are nearing retirement but would like to know what the best way to go is. The property is selling for $40k and our present home is already paid for. It is worth anywhere from $93k-$103k. Can we get a home equity loan or which is the best and lowest interest rate? Thank you. P.S. The home will need about $10k to fix up- it is 1300 sq. ft. and needs a new roof and interior cosmetic work.

Answer
Call on some banks and credit unions and see if they will do home equity loan or home equity line of credit.
These are technically 2nd lien mortgages and have lower fees.
Refinancing the entire home with a 1st lien lender is more costly.

If your credit isn't good enough for the investment loan, it will be tough to get the 2nd lien on your own home as well.

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

All Answers


Answers by Expert:


Ask Experts

Volunteer


Tom Burris

Expertise

I can answer any question regarding Mortgage loans for Purchase or Refinance. I currently work as a Mortgage Banker in Dallas, TX and have experience as a Mortgage Broker. The favorite part of my job is helping First Time Home Buyers. I also consider myself an expert of Credit and Credit Qualifying for a home loan. Many of my loans are the result of showing clients how to credit qualify for a loan after they were denied in the past. We do FHA, VA & Conventional Financing. I have extensive experience in Investor Loans as well. I will NOT answer questions about 'getting around guidelines', ect. Or if I sense that you are trying to call your 'investment' property a primary residence, I will reject the question. I will ALWAYS err on the side of caution if I sense that the question is fraudulent in nature.

Experience

7 years experience as a Mortgage Broker and as a Mortgage Banker

Organizations
NMLS# 335055

Publications
http://activerain.com/blogs/dallasloanguy

Education/Credentials
Mortgage Professionals in Texas are required to take many ethics courses and other industry training to satisfy State mandated continuing education requirements.
Site Owner of DallasLoanGuy.com which has lots of free mortgage info for the First Time Homebuyer and Veteran Homebuyer as well.

©2016 About.com. All rights reserved.