Purchasing Power With Good Credit?
I am a new realestate invester, just put a bid in on first home today. I have good credit 789, 770, 756. I am in the US Military and make 45,000 a year. My goal is to purchase 10 rental units as a start and then pay down loans for a few years. If I am purchasing homes and can show a positive cash flow on them, will I ever reach a point that lenders won't want to lend to me based on my income to debt ratio? Also I would like to find a good lender a stay with him for all my deals so as to build a relationship with this lender. Please any reccomndations on a good investors lender. I would like 90/10 purchases and possible some 7/1 ARM 90/10.
Paul
If you truly intend to buy/hold...as I do, then go 80/20, 30yrs for best rates, non-owner occupied and maintain a comfortable equity cushion...eventually the FNMA regs will max you out around 6 loans, however, if you're married, then you may qualify for another 5, assuming you're joint on a personal homestead...with time you will build equities which may be refinanced/releveraged into more rentals...good luck.
There are lenders that will give up to 20 loans to one individual.
Mike
Hello.
While there are lenders that will give xx number of loans to one person, at some point you will be relying less and less on the ability to "borrow" new money once your into the properties.
You may be able to purchase future properties with refinances of your first purchases.
If the banks don't want to help you at some point, then find another bank or use your own equity in other props.
Just an idea.
Well I had to counter a offer but seller is willing to sell for 47500. My loan officer says he can get me a rate of 6.25 90/10 30 year. Is this a good rate or can I do better?
Thats an excellent rate, but with your credit, I would inquire as to why you can't get the 5.25 the banks are always bragging about.