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Old 11-14-2008, 01:24 AM
 
Location: Laguna Niguel, CA
768 posts, read 3,958,597 times
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Quote:
Originally Posted by kani-lehua View Post
is it possible that one canNOT qualify for an investment loan with a particular lender yet CAN qualify with another?
Yes, if they have different underwriting guidelines - or in your case if one underwriter can't think clearly and another can.
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Old 11-15-2008, 03:56 PM
 
392 posts, read 1,400,632 times
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Investment rates are higher and the down payment has a huge impact. Bank on at least 10% down and the rates will be higher and probably with a point or two. 20% gets rid of PMI and brings the rates down some. 25% or more is getting the best rates. I haven't seen any 5% down any more (can't get PMI for them any more).
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Old 11-16-2008, 05:41 AM
 
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I'm trying to pick up a single condo foreclosure for my retired parents. Because I already own a home, it is being seen as an investment property. I've got good credit but all of the major, national banks are saying that based on the current market, any property classified as an "investment" property automatically requires 20% down. I'd like to put 10% down at most.

I've read the scenarios posted by InvestmentLoans but unfortunately, don't really understand the note selling aspects and it seems a little extensive just for a single condo. (I'm not looking into becoming a full-time investor with multiple properties - I just want to do this one deal.) My main question is, are there any banks out there today, given the recent market activity, doing 10% down for investment properties?

ETA: I'd be very open to looking into smaller banks and lenders. I'm in Georgia, if that helps.

Any help would be greatly appreciated.

SC
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Old 11-16-2008, 05:42 AM
 
Location: Laguna Niguel, CA
768 posts, read 3,958,597 times
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SC what market are you buying in?
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Old 11-16-2008, 05:46 AM
 
30 posts, read 122,530 times
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ShanetheMortgageMan,
Thanks for the quick response! Downtown Atlanta.
SC
Quote:
Originally Posted by ShanetheMortgageMan View Post
SC what market are you buying in?
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Old 11-16-2008, 06:03 AM
 
Location: Laguna Niguel, CA
768 posts, read 3,958,597 times
Reputation: 456
Thanks. The reason I ask is I know of a portfolio lender who insures their own loans doing 90% in certain states but only west coast. However all the normal mortgage insurance providers are no longer insuring investment properties, so that is the reason you are limited to 80%.
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Old 11-16-2008, 06:09 AM
 
30 posts, read 122,530 times
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Oh, ok. Thanks.
SC

Quote:
Originally Posted by ShanetheMortgageMan View Post
Thanks. The reason I ask is I know of a portfolio lender who insures their own loans doing 90% in certain states but only west coast. However all the normal mortgage insurance providers are no longer insuring investment properties, so that is the reason you are limited to 80%.
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Old 11-16-2008, 08:17 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,098,079 times
Reputation: 952
SC, have you looked into an FHA loan with you as a non-occupant co-borrower? This will allow you to structure it as an owner occupied and will allow you less money down than an investment property.
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Old 11-17-2008, 05:39 PM
 
30 posts, read 122,530 times
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Yes but what I understand is that that approach would require me to basically purchase with someone else and rely on that person to then sign over their interest to me - and I'd have to get re-financing to get their name off the loan. Is that right?

Is being able to get re-financed pretty much guaranteed or is it also very iffy in this market? I wouldn't want to end up owning (or having the debt) long-term with someone else.

SC

Quote:
Originally Posted by Daddys///M3 View Post
SC, have you looked into an FHA loan with you as a non-occupant co-borrower? This will allow you to structure it as an owner occupied and will allow you less money down than an investment property.
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Old 11-17-2008, 08:44 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,098,079 times
Reputation: 952
Quote:
Originally Posted by SummerChild View Post
Yes but what I understand is that that approach would require me to basically purchase with someone else and rely on that person to then sign over their interest to me - and I'd have to get re-financing to get their name off the loan. Is that right?

Is being able to get re-financed pretty much guaranteed or is it also very iffy in this market? I wouldn't want to end up owning (or having the debt) long-term with someone else.

SC
Actually what I am referring to is structuring it with both you and your parents on the loan, them as the occupying borrowers and you as the non-occupant co-borrower. It is basically like co-signing for them, only it does not matter if they do not income qualify although if they have credit issues that may be a problem, and you would have ownership interest in the property unlike a co-signer. It is also known as the kiddie condo program as many parents do this for their children while they are in college or after they move out on their own. This would allow you to structure the loan as an owner occupied residence. You would not own anything long term with anyone else other than your parents.
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