LOOKING TO BUY AN INVESTMENT PROPERTY? READ THIS.

Here's some quick info that may help you decide if it's something to do now, or later...

  • Many lenders will require a minimum of 15% down (85% LTV ratio) for a 1-unit investment property (single family home), and anywhere from 20%-25% down for a 2 to 4-unit investment property (80%-75% LTV). Combine this with a minimum 620 credit score to secure financing. Typically the debt-to-income ratio can't exceed 45% - this would include the property payment.

  • Fannie Mae does NOT require a 2-year landlord history to qualify.

  • You can purchase an investment property with non-relative individuals.

  • Generally, homes may only be purchased by individuals, not LLCs or other business entities.

  • The downpayment amount may NOT be gifted. Lenders will require proof of funds for at least 60 days prior to application.

  • CONDO CRAZINESS!!! Thinking of a condo as an investment property? Yeah, probably better to shoot me a message - it gets a little involved.

 

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Mike Waldvogel