Have you bought an investment home recently?

[disneyofcourse]

Does anyone know the current lending rules for being approved for an investment property? I know all banks are different and I do have an appointment with my bank guy next Thursday. Still I wonder if anyone on dis boards is familiar with this, and how approval works if the home is already rented for enough to cover the mortgage. Would that rent money count as my income when getting approved for purchasing that property? The seller is apparently selling off a bunch of his property to pay cash for other things. I am looking at a property where I could put a large amount down but rather not if I can avoid it and still get approved.

 

[Pakey]

We bought one not long ago.

Rental income was not considered into the equation at all for us; only our regular income from our jobs was. We had to have 20% down.

 

[eliza61]

We bought one not long ago.

Rental income was not considered into the equation at all for us; only our regular income from our jobs was. We had to have 20% down.

Ditto,

Unless it's a dedicated apartment building which has seperate types of financing. My bank decision was based on my family income, credit history, etc. just like a mortgage for a primary residence.

while I did purchase a while ago, I did a refi and did not include the income from renters.

 

[disneyofcourse]

Thank You for the info. I would prefer to put between 20% or less down depending on the requirement. In the few minutes we spoke (banker) on the phone he said the bank wouldn't approve me unless I had over 30% down if it was an investment property. So, I may have to look into other banks and find one that's right for what I need and want. The home itself is a single family home and in a good neighborhood and a good rental history. I'm thinking it might be a great first rental home. Originally I had been looking at condo properties but I hear financing is much harder to obtain on a property like that.

Are you guys happy with your investment?

 

[Kika]

Around here, you used to have to have at least 20% down. (That may have increased in light of all that's gone on in recent years.)

Investment property can be a great investment. Just make sure you have enough extra money saved (or income) to cover the worst case scenarios (renter moves out, renter doesn't pay, etc.)

Good luck!

 

[Pakey]

We are quite happy with our investment. But since we make decent incomes and carry no debt except on this property, we can easily make the payments even without renters in it. I'm not sure I'd be so happy if I had to depend on the rental income to make the investment payments.

 

[disneyofcourse]

I plan on using the home as an additional source of income and would plan on paying it off within 15-20 years or less. I'm keeping my day job for the real money. Once my main home is paid off I will also turn that into a rental and buy another main residence..Or at least that's the plan!