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Purchasing a Home for Investment

I am looking to purchase a second home for investment's a great deal in what I feel is an up and coming neighbor hood. What are restrictions I need to look into? I wont be living there, however if it makes it easier for the home loan I can place my sibling in the home in the mean time.Are there special loans for this type of endeavor? by jimbolsen2 from Las Vegas, Nevada. Dec 30th 2010 Reply

Patrick McCarthy (PatrickM)
#23 ranked lender in Ohio - 196 contributions

Hi Jim. It is great that you are taking the time to research this information before you 'jump in'. Many times I see folks make an offer to buy property without researching first, only to be hugely disappointed in the end. There are several things you need to be aware of.Having a family member live in the home is not an advantage other than you know your tenant pretty well. :) Most lending institutions are going to require 20% doenpayment or more, depending upon the situation. It is hard getting a rental property loan if the property is in disrepair or vacant, as well. I would strongly suggest talking to a mortgage professional, such as myself before making a move. I can be reached TOLL FREE at 866-901-3576. I look forward to talking to you soon.

Dec 30th 2010
Rick Pelleriti (RickPelleriti)
#364 ranked lender in California - 59 contributions

You need to be very careful about being able to qualify with your debt to income ratio. Lenders will only give you credit for 75% of your gross rental income.Also, lenders typically want you to have two years of rental experience.It is much tougher to qualify for a "non-owner" occupied home, so make sure you discuss in detail with your mortgage broker or banker of choice.

Jan 2nd 2011
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