[femdecoy]

This is similar to another thread but.....

I am in my mid 50's and live in Los Angeles. I have been visiting Las Vegas 3-5 times a year for 8 years and have family and friends living in your fair city. I want to buy a home there and rent it out until I can retire to Las Vegas. So the question is...........

How much down are lenders now requiring on an investment property?

I know there are some true professionals on this board and I appreciate your response and/or comments. Thanks!

[Daddys///M3]

You are looking at a minimum of 20% down on an investment property, as well as 2 months of payments in reserves. You will need to qualify with both mortgage payments (if applicable). Unless you have landlord experience you cannot use rental income to qualify. With 25% down you will get a much better rate.

[femdecoy]

Daddys....thank you so much for such a quick reply!

[airics]

are stated loans still in existance and can you define landlord experience

[Daddys///M3]

Originally Posted by airics

are stated loans still in existance and can you define landlord experience

Stated income loans are gone. Although some brokers still claim to be able to do them, the revisions to Regulation Z require all lenders to determine the borrower's ability to repay.

As far as landlord experience goes, an underwriter is going to want to see 2 years of tax returns with Schedule E's. Now you may see exceptions if you can provide rental comps, a lease agreement, and a security deposit check but that will depend on the lender and the underwriter's discretion.

[airics]

so are there any loans left that don't require w2s or docs (for self employed)

[Daddys///M3]

Originally Posted by airics

so are there any loans left that don't require w2s or docs (for self employed)

Hard money loans. I don't really originate hard money loans so I can't give you specific guidelines, but count on max loan to value 65%, at least 4 points up front, and interest in the 12% range. Other than that I cannot think of any no income documentation loans.

[barryhussein]

That's brutal M3.

[airics]

ouch.. i guess i was very lucky at 4.25% with only proof of assets and 2pts..(20% down).. back in february..

[jfkIII]

Daddys...quick question, but not sure if appropriate, given the second mortgage, as opposed to first...I have a home equity loan (remaining balance $39K of original $42K)...15 yrs fixed rate @ 6.75%. The old rule of thumb used to be if rate goes 2pts or more lower, than it is worth refinance. Now that rates are hovering at 5%, does the old rule still apply. (Good credit score of 721.)

Thx.