Owner Occupied Financing
I am beginning the process of finding a owner-occupied loan for a house I intend to be my first RE Investment. The best deal I have been quoted is 100% LTV, buyer pays closing costs, 6.25% rate, 7YR ARM, 2 months reserves, and 38% D/I. Can anyone give me some feedback if this deal is as good as it gets or am I missing something better?
Are you going to acutually live in the house?[ Edited by SmileyFace on Date 10/28/2003 ]
[ Edited by elissnurse on Date 10/29/2003 ]
yes it will be owner-occupied
Sounds pretty good to me...rate might be slightly high, but I put more down on my house and had a 80LTV instead of 100. Check out the closing costs, and credit score requirements (both might be high). This might be a way for you to get out of renting and into your own house.
Can you find a multi-family unit? Live in one and rent the other, this still qualifies as owner occupied and if you find someone to sign a lease agreement PRIOR to application with the lender, the lender will ADD a portion of the monthly rent amount to YOUR income. This is a nice bump for you if your ratios are thin. Secondly, once you have locked in the FANTASTIC interest rate in one year, step up, lease the owners unit (yours) and create a monthly cash flow from the property. Equity and cash flow the ingredients for success.
Good luck,
Eric & Rosa
[addsig]
How will the 100%LTv be set up? Will it be one mortgage with PMI or without PMI? Is it an 80/20, 70/30 etc? Where is the property located and what will be the loan amount?
this particular loan is one loan and requires PMI.
PMI=expensive
makes big big difference in staying under the 38% D:I as well. Any loans similar to this that will fund closing costs as well?