I want to buy another house but don't have money to put down. Investment.?

Question

Sort of a strange question I guess. I already have a house that I live in. I want to buy another house, as an investment. I don't want to pay very much monthly at all. (interest only?). I have excellent credit. Would it be bette rto try to buy a building (3 flat or duplex) and have the tenants make the payments? (provided I have tenants). Ideally I'd buy another house that I can move into now and keep my current house till the market gets better for sellers. ok, long winded I know. Any suggestions on how to do this with no money down?

This is in Chicago and the north west west suburb area.

Answer 1

You will need some money down since you are purchasing an investment property. You can take an equity loan on your current home to use it as the down payment for your investment property. I don't know of a lender who does 100% financing on an investment property.

The mortgage business has changed considerably in the last 6 months, underwriting guidelines have changed making it more challenging to obtain a mortgage loan. Generally lenders look for reserves (money already in the bank) when you are buying an investment property. Most of the foreclosures on the market are from investment properties. When people fall on hard times, they will pay their primary residence mortgage first and let the investment property go into foreclosure (non payment) and let the bank take over the property. If a lender has too many foreclosures, it puts them out of business (see local newspapers on mortgage lenders going out of business).

Answer 2

The FED doesn't have $1Trillion to inject anywhere. The FED (Federal Reserve Bank) is currently on the hook for $500 Billion in mortgages they guaranteed for US banks and brokers. DUMB MOVE! If any of those loans default, the US tax payer picks up the tab. The FED has guaranteed the money on behalf of taxpayers. This move by the FED was the government "back door" bail out. They are bailing out the banks and brokers who made bad loans. The USG is not bailing out, nor should they bail out individuals who made poor investment decisions. See my posts on real estate and the markets from last spring 2007 to date. I had been advocating short the financials, and put buying all last year. Easy money is done. Now it's some work. Careful short sellers. Shorting now on some of these companies mean you are betting on a bankruptcy. The FED has stated they have effectively given the major banks and brokers a put (no failures) since the 03-17-2008 BSC/ JPM deal.

Answer 3

any answer really depends on the location you are talking about and the money available . the first drawback i believe you will have a hard time finding a company that will let your put no money down... i would suggest you save some money and since you are willing to move look around for a duplex -- than you will have the option of living in any three.. but either way with the market right now is a buyer's market -- but only buyers that have cash or a real great steady cash income!!!

Answer 4

which country and province/state/district is this in?

laws vary