Poor Credit Investment Questions
I have been buying foreclosed properties from an out of state investment company. I have 3 that I have rented and agreed to finance to the tennants after 1year of timely payments. The agreed mortgage payment to me is a little over $200 more than I pay monthly for each note. They pay me this now for rent and in the contract they handle all repairs and pay me for insurance and taxes, from the day they move in. The company is out of properties in my area, but I want to continue doing this with other properties. My credit rating is poor @581, should I approach banks for loans for additional properties?
Also I am about to attempt a home equity loan on the house I live. I have a little over 50% equity. I will be puting the money back into this house and not elsewhere. Will a home equity loan hurt my chance later at an investment property loan? I would really like to keep the ball rolling, if possible.
Thanks
I doubt there is a traditional bank that will do a investment loan for you. You can get one from a loan officer, depending on what you put down. as far as equity line, it wont hurt but you will do a lot of work to get it, and if you have a 1x60 late, may be impossible. 580 your mid score? 90% cltv financing should be pretty easy, and that second would allow you to have a down payment. Do you make enough money on paper to support your debts (min payments) and still have over 55% extra? (income from properties are reduced by 25%, so it is rare that investors can go full doc). After you have 5 mortgage notes traditional lenders wont touch your deals, and after 10 you may have higher rates.
good luck