My boyfriend and I think we’ve found our first investment property however we are having trouble getting financing. We went to a traditional lender thinking my boyfriend could capitalize on a first time home buyers mortgage(he currently lives in my home) so we would be able to put less down than 20%. However we were told you cannot get that type of loan if the home is for an investment, so we would need to put 20% down. Between the two of us we definitely have the money to put down and for closing, but I have recently become unemployed, so as you can imagine I am not going to co-sign with him as it would only hurt our chances. He doesn’t have enough money in his account alone and we were told I cannot give him any money as it would need to be in his account for 60 days prior to our application. We feel this property is a great deal and would hate to miss out. Are there any investors out there and how do u go about purchasing your properties? Should we use Hard Money? Should we try a Credit Union? If anyone needs numbers on the deal I can supply those as well. Any help would be appreciated!
I’d like thank everyone for there responses… even the ones that suggest I should haul my butt down to city hall and get married 
Sorry, I am not ready to go there just yet. We both consider this a business venture, and I am not at all concerned pooling our finances together to make it happen; after all, isn’t that what you would do with any other business partner?
At this point it looks like we will have to let this one go and try to wholesale it to another investor. The property is a foreclosure(needs very little work) in Northern NH if anyone is interested. Feel free to contact me for additonal details. Thanks again!
Need advice on financing our first RE investment property?
24
Mar
golferwhoworks
March 24, 2010 at 2:01 am
you are being told correctly and no way around it. investment requires 20% down with seasoned down payments and closing cost as well as 6 months reserves. The only way is to get married today so your money counts
Ed Atun
March 24, 2010 at 2:32 am
A credit union will not offer the loan you want. It will be the same as any other mortgage lender. The investment property is 15 times more risky for the lender; and this has not changed in the recent bad times.
A hard-money lender will charge you 18%. The only reason to consider this is that you will possibly be able to refinance conventionally in 6 months. That is when the banks realize that you are actually a good risk since you have successfully managed your investment property. It is also possible that you will start getting refi offers in the mail 7 days after you close the sale of the rental house.
Your nearest mortgage broker will have the name of a trustworthy hard-money lender. Or look in the classifieds..
There are some times when you have to let the best deal slip away because you are not ready to put down the 20% down payment.
Tamra
March 24, 2010 at 3:16 am
Marriage would be an alternative. That way the money is mutual.
doinou
March 24, 2010 at 3:29 am
You shouldn’t be a “we” until you are married. Keep you finances and investments separate.