I have not been able to sell my condo and I need a larger home. I need 100% financing but I do have enough for the closing costs. I owe 169K on my condo and its worth 186K. I make 60K per year and have a car payment of $400 a month, with no other debt payments. I am looking to rent my condo for $1100 a month but I do pay about $1400 for mortgage, fees, taxes, etc. I also have a 720 credit score.
Do you think I can get a fixed rate loan for 230K with 100% financing? If not what can I do?
I am going to the bank next week and I would like to have some idea of what my options might be.
Thanks for your input.
2007-08-27 11:43:18 · 5 answers · asked by jtis 2 in Business & Finance ➔ Renting & Real Estate
Why aren't you charging full bor for rent? $1400? Are you planning to convert your condo to a rental property on paper as well and for taxes purposes? Are you going to depreciate it? I don't see why you wouldn't qualify, other than the requirements have stiffened in the past few months and the lender may want to see some indication that you can actually get $1100 for rent. It never hurts to ask, and ask several lenders, to give your self options. Oh, and you might want to talk with a tax advisor on the impact of owing rental property.
2007-08-27 11:49:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Woah! Step back my friend. Haven't you been reading the papers or watching the news? Why do you want to do this to yourself?
First off you are hard pressed to find someone to give you 100% finnacing on a second home when your first isn't even going to be covered by the rental. Second, if you did, how long do you think you can honestly float both houses? What if your tennant misses a couple of months rent? What if your tennant moves and you can't find another for 4 months?
Honestly. Can you afford what you are about to do? The foreclosure market is teeming with homes owned by people just like you and me. People who thought they had a plan.
Ask yourself: "Do I really NEED the space, or can I hold out a few more months until my condo sells?" I think you know the answer. Do the right thing.....
2007-08-27 19:05:46 · answer #2 · answered by loancareer 3 · 2⤊ 0⤋
Things to Watch Out For When Comparing Mortgage Quotes
1. Locks of 45 days or more have a higher rate.
2. If lenders are asking you to pay points on the loan, be sure to have them quote the points in dollars. This is for your protection. Unscrupulous lenders might later on change the base amount to collect more from you. This is because points are computed as percentages. The bigger the base, the higher the commission, for example.
3. Beware of lenders that are not upfront about the loan process to you. A trustworthy mortgage company is always willing to answer your questions and explain points of misunderstanding.
Comparison is good because it highlights the defects of one and showcases the suitability of another. All the websites that dispense mortgage tips will always tell you to compare mortgage quotes.
2007-08-27 23:36:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Are you sure your condo association allows you to rent out your unit? Some don't.
You don't sound like a great candidiate for 100% financing. Your car payment is high and your insurance on the rental unit will go up and the lender is going to look at it and crunch numbers assuming some vacancy loss on the other unit, meaning you will have to be able to cover 2 payments.
2007-08-27 19:35:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Real estate is usually a smart investment.
2007-08-27 18:50:33 · answer #5 · answered by mac 7 · 0⤊ 0⤋