Possible To Purchase Two Properties At Once.
I am a first time homebuyer and have been approved by a great program to purchase rental property with no money down, no closing costs and a low interest rate. With this program, I cannot own another property at the time I close on this property (I will call this property #1). I have also found a 5-unit rental property (property #2) that I actually like better, but does not qualify under the program b/c of the number of units it has. Thus, I would have to use a different lender. Each property would provide a nice net income. Ideally I would like to own both.
I was told by a lender, that if I structure the deals to close on property #1 first and close on property #2 within 1-2 weeks later, that the lenders for each property would not be aware that I was purchasing another property b/c the mortgages would not show up on my credit report for at least a couple of months. Is this correct? Is there any way each lender could find out about the sales contract or loan application for the other property during the underwriting process, etc.? Is this illegal in any way?
Any advice would be greatly appreciated!! I need to make a decision ASAP. [ Edited by cara2290 on Date 06/25/2004 ]
We do this alot. It is actually easier to do two at once and works. It is not illegal and you'll have both. Go get them.
Thanks for the advice and confirmation. I'm going to make my first offer today
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I can confirm this as well... Most mortgages take about 30-45 days to show up on your credit report. You can even buy property 1 now and then not close on property 2 in 2-3 months from now. You just need to make sure your mortgage broker gets loan approval for property 2 before property 1 shows up on your credit report. Most loan approvals are good for 30-45 days.
The issue is can you qualify for the debt load.
Shop 5+ unit financing and look for the DCR and vacantcy ratio they'll accept.