Real Investor Match » home

can a person take out a 2nd mortgage on their home to purchase an investment property?

Editor — Fri, 02 Apr 2010 15:58:30 +0000

and without out of pocket money?

Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?
Should I take money out of my 401K to catch up a mortgage on an investment property?
Tax Question: Should I buy rental property with a mortgage or take out a home equity loan?
Currently have home mortgage as an investment property with a friend?

Does my property qualify for the NACA home saver program?

Editor — Fri, 02 Apr 2010 15:58:28 +0000

The deed of the property is in my name and my parents but the loan is under my parents name only. For my parents, this is their second/investment property but for myself, it’s my only.

If I purchase a home in all cash would I get a mortgage or home equity loan?

Editor — Fri, 02 Apr 2010 15:58:27 +0000

I am planning on purchasing an investment property with 100% cash. I can purchase the property at 60% of market value. I then plan on pulling a loan out for 60% of the market value. Would it be considered a mortgage or a home equity loan? A mortgage currently is about 300 basis points lower than the home equity loan. I am hoping it would be considered a first mortgage because it would not be a second lien position. Thanks

“Homeowner’s Do-it-Yourself Guide to Save Your Home from Foreclosure” Success Program

Editor — Thu, 01 Apr 2010 22:58:22 +0000

Buy Cheap “Homeowner’s Do-it-Yourself Guide to Save Your Home from Foreclosure” Success Program

Can I get an FHA loan on a home that has tenants?

Editor — Thu, 01 Apr 2010 07:59:00 +0000

I am interested in purchasing a short sale that has tenants in place through May 2011. My intention is to occupy the home as soon as their lease is up, but I was told by my mortgage broker that the only way to purchase this home would be as an investment property (with minimum 20% down!!!). Is there any way to get an FHA loan on the home?

Home equity loan interest is tax deductible?

Editor — Tue, 30 Mar 2010 23:59:01 +0000

I have two mortgages – one for primary residence and one for investment property. I know that interest payment on both loans are tax deductible. But if I get a home equity loan against my primary home to pay off my high-interest car loan, the interest on this home equity loan is also tax deductible?

can i get a primary residence loan on a home that is not my primary residence?

Editor — Tue, 30 Mar 2010 23:58:58 +0000

I do not own any real estate and the home I want to buy is 12 hours away in another state. If I get a Primary Residence Loan, and the home ends up being an investment property, how does that affect me? Will it only come up if I sell it and am faced with capital gains?

what happens if I lose an investment home to foreclosure, will I still be hit with an IRS tax bill?

Editor — Mon, 29 Mar 2010 15:58:22 +0000

what happens if I lose an investment home to foreclosure, will I still be hit with an IRS tax bill?
lets say the loan is 400k and the property get reverted to the bank at a value of 250k will i have to claim the difference as income?

What is the best home loan for a short term mortgage?

Editor — Mon, 29 Mar 2010 15:58:20 +0000

It is for an investment property and I am only planning on holding on to it for 3-5 years. What is the best home loan available with the lowest payment without any differed intrest?

how exactly do I use a home equity line of credit to invest in real estate?

Editor — Sun, 28 Mar 2010 07:58:55 +0000

I have heard that taking the equity out of my houses to invest in real estate is a great option. what exactly are the inner working of this? Won’t i be having two mortgages that have to be paid from rental income? any advice and resources or links would be appreciated.

Can someone rent a home that they purchased with an FHA loan?

Editor — Sun, 28 Mar 2010 07:58:52 +0000

If you purchase a home with an FHA loan (and you still owe on that loan) can you use it as an investment property? Furthermore, can you purchase other properties when you have an FHA loan? Can you live in another property other than the home you purchased with the FHA loan? What are the restrictions?

Tax Question: Should I buy rental property with a mortgage or take out a home equity loan?

Editor — Sun, 28 Mar 2010 00:58:24 +0000

I am buying a rental property for $50K. I will put 10K down so I need to borrow $40K

I have 2 offers that will determine whether I will apply the mortgage interest on my schedule E for rental property or as an itemized deduction on my 1040.

Home equity loan against my primary house at 6.09% with $300 loan processing fee. 15 year note – 1st years interest payment will be $2452 – I think this interest would be an itemized deduction.

Mortgage for the investment property at 6.25% with 1 3/8 points. Total fee is $2100 including points. 15 year note – Ist years interest payment will be $2492 I think this would be an expense on my schedule E.

I am at a 28% tax bracket and have no other mortgage on my primary house.

To further complicate the picture I have $34000 in student loan debt and could roll this into my home equity loan.

What would be best for my taxes? Take the home equity loan or a mortgage on the new property? Should I roll my student loans into the home equity loan?

Funding for “Investment Property” which will eventually be our retirement home? Any help?

Editor — Fri, 26 Mar 2010 23:58:57 +0000

Here’s the situation: My husband and I currently have a primary residence in North Dakota which we have a mortgage on (monthly payment is $823). We plan to retire in 15 years. For the past year we have been looking at property for sale with or without a residence on it to have set up as our primary residence in retirement. This last week we found it. Its perfect, everything we want for our family, upstate New York, 5 acres, stream, surrounded by apple & peach orchards, 1/4 from Lake Ontario, across the street from a state park, 15 minutes from Amish Country, huge barn, etc. Currently there are renters in the property and it is For Sale By Owner. The property is selling for $155k and the current owners bought it for $145k 3 years ago. We believe it is reasonably priced. Our credit score is between 760-770 and have a low debt ratio (no car payments, no credit debt, one small 3 year loan under 7k that we got for our parents to consolidate their loans and they pay on time.) I think we have formed a good repore with the sellers. This is their second home as well, they live out of state.

I have talked to a handful of banks and we are definitely preapproved. The down fall is that they are considering this an investment property because there are currently renters in the home whom we have agreed that they will stay for no longer than a year, then becoming our vacation home until we can retire there. Is there anyway around this “investment” classification that the lenders are calling it. For 14 out of the 15 years it will be a vacation home until we can make it our primary residence. With the lenders classification the lending falls under more strict rules. For example we will have to have 20% down, plus closing costs, totaling about 42k due at closing. That’s a lot of money! But we want to get in now because I know as we speak mortgage lending practices are tightening and new rules are being put into place. With this and inflation we want to get in now before it will cost us even more money. Our plan would be to have it paid off by the time we retire.

Please anyone with any ideas/advice would be helpful. We are open to non-traditional ideas like “assuming a loan” or the like.

Here is what we have been given by the banks thus far:
30 year fixed
pay 2 points
6.625 interest rate
20 % down
Payment around $1070 a month

Thanks in advance.
I would like to add a few more details and thank you to all who have helped in answering my question thus far.

The current owners own the house in full, so there is no mortgage. Also, I know they want to sell this house so they can use the money from equity for their new house. We haven’t put in an offer yet but they have already told us they are firm on the price, 155k and that they have already reduced it by 15k. I do believe it is a great deal at 155k.

Hope these minor details help. Keep coming with the good advice.

what qualifies as a second home for mortgage loan?

Editor — Fri, 26 Mar 2010 13:59:23 +0000

I am working overseas, I want to buy a house in Texas. Can I consider it to be a 2nd home and ask the mortgage company to give me interest as second home instead of calling it “investment property” ?
The interest rates and taxes for 2nd home is less than investment property.

It will be rented out till we come back to Texas.

What is the advantage and disadvantage of buying a foreclosure home?

Editor — Fri, 26 Mar 2010 01:59:07 +0000

I live in Dallas, TX. Will you recommend buying a foreclosure home?
What is the advantage and disadvantage of buying a foreclosure home?

Please help. I’ll pick the best answer later.

Getting a second home that I will live in within 5/6 months with a low interest loan.?

Editor — Thu, 25 Mar 2010 19:58:40 +0000

I am a RE investor in training. And I just got a property that I am suppose to live in as my principal home. I will rent out the rest of the rooms to generate cash flow. However I want to buy another property to generate more cash flow. But I want to get a low loan rate if possible. Is it possible to get a second loan without having to get an investment loan with high interest?
I had a couple people tell me that in about 5-6 months I can write a letter to my lender and tell them that I dont like to live there anymore for any reason, ie hate the location, don’t like the neighbors, etc. and that I want to buy a second home and live in there. That way I can go out and get me another loan for a low rate and have that as my new principal property, while keeping the first home to rent out for cash flow. These guys already has 6 homes and tells me that is how they has been doing it. Is this legal?

VA Home loan, first time home buyer.. Any suggestions?

Editor — Thu, 25 Mar 2010 15:58:23 +0000

My hubby and I are looking into buying our first home/investment property. It is a duplex 2/2/1 on both sides. I am still a student so I dont have any income other than fin aid and loans. He makes about 45 K a year. I do graduate in december of this year, so once I do graduate we should be doing well. It is on the market for 140K, hubby was military, so has a certificate for a VA loan. My credit is good, 660 and hubby’s not so good at 590. Wondering if anyone could give me any advice. Is this something we should even be looking into right now since I dont have an income yet. I mean we do rent so we would be paying the same with the exception of the income of the rental unit. We have about 5 K saved so that would help if we came into a crunch. We were also hoping to get 100% financing. Any info would be great!!

Currently have home mortgage as an investment property with a friend?

Editor — Thu, 25 Mar 2010 14:58:52 +0000

he purchases a new car, does this affect me or mortgage in any way if he used his credit and his name? reason I am asking is because I went to refi my car and for some reason the loan officer noticed a new car purchased and was wondering if this had an affect becuase I was unable to refi – thanks for your time

loan at 350k 70.5% ltv cashout refi on second home or investment property 739 fico SIVA Hybird option arm 1.25

Editor — Wed, 24 Mar 2010 07:58:54 +0000

Start Rate

Where can I get a home equity line of credit (HELOC) on a condominium investment property?

Editor — Mon, 22 Mar 2010 23:58:55 +0000

I own a condominium that I rent out and owe nothing on the mortgage. I’ve applied for several HELOCs online, but all have denied me because it is considered an investment property. Does anyone know of any bank that offers this type of loan?

can an investor add someone to a deed if he doesnt have a job to get a home loan or line of credit or refi.?

Editor — Mon, 22 Mar 2010 23:58:54 +0000

with strick bank lenders can and investor with no job add someone to the deed or title of his home or investment property to get a home loan line or refi if he owner occupy it,or can he do it with private lender ¬ a bank?

Can I use profit from an investment sale to payoff a home equity loan to avoid capital gains tax?

Editor — Sun, 21 Mar 2010 15:58:16 +0000

I recently sold an investment property with some profit and if I use this money to payoff an home equity line on my primary residence, will I have to pay taxes on it?

Can you buy investment property using a first time home buyer type mortgage?

Editor — Sat, 20 Mar 2010 18:59:02 +0000

I’m interested in buying a house to rent out, but am wondering if it is possible to get a loan that is not dubbed “investment”, which usually requires up to 20% down payment and carry a higher interest rate than regular mortgages.

Can you take out a home equity loan on your current home to put a down payment on an investment property?

Editor — Sat, 20 Mar 2010 07:58:47 +0000

Just wondering if I put a considerable down payment on a home and built more equity over a few years if it would be possible to take a home equity loan out to put a down payment on another home that would be used for investment purposes? A rental property/duple/apartment complex etc….

Of course I realize that the home equity loan would need to be paid back but I was wondering if people out there do this on a regular basis?

If not can anyone give me creative financing ideas when it comest to purchasing multiple homes for investment purposes.

I understand a persons credit score tangible assets can be a determining factor but I have yet to build any considerable assets.

I make close to $250K a year before taxes, would that alone be good enough for banks to finance me?

P.S. – I live in the Dallas TX area and I am looking at properties averaging around $100K as rental properties.

Just wondering if building up equity in homes would allow me to borrow to purchase.

work from home online part time data entry job without any investment?

Editor — Sat, 20 Mar 2010 00:58:22 +0000

I am looking for work from home online part time data entry job without any investment,can anyone advice me with geniune websites ??????

Credit is good I have an investment property that is paid in full should I refinance or get home equity loan.?

Editor — Thu, 18 Mar 2010 23:59:13 +0000

I want to consolidate my credit card bills and use some of the cash for more property.
I want to consolidate my bills and use some of the cash to purchase additional properties.

Can I refinance my primary residence as investment property & then buy a new primary home with an FHA loan?

Editor — Thu, 18 Mar 2010 23:59:11 +0000

My current primary home was purchased with an FHA loan. I’m interested in buying the house next door to me and living there.

How does selling your home to one of those “we buy houses” places affect your credit?

Editor — Thu, 18 Mar 2010 14:47:26 +0000

my friend is in financial trouble and wants to sell her house before it gets foreclosed on….we see ads for these places everywhere and I wanted to know if they are legit..I’m sure she doesn’t want her credit messed up more

Mortgage/Realestate Advice. Should I buy now before my other home goes to foreclosure?

Editor — Thu, 18 Mar 2010 07:59:11 +0000

I own a home in GA and had to move back to OR several years ago for work. I’ve had renters in the home and everything was working fine until the economy took a dive. My husband and I want to purchase a home here and can afford it but since my renters are not paying their rent on time and we are not getting a lot of interest with it being for sale, we were considering jumping on purchasing a home here and if we can not get solid renters in there we would not be able to make the payments on the GA house and it may lead to short sale/foreclosure status. Can anyone tell me if you have two homes and one goes into foreclosure, does it do anything to the other loan or jeopardize that other house? We are sacrificing a lot to continue making the payments on that other house but would really like to be able to buy a home here with out having to wait 10 years + for credit to be re-established if (god forbid) the house does go into foreclosure.

Second home mortgage vs. investment property mortgage?

Editor — Thu, 18 Mar 2010 07:59:10 +0000

We are considering buying a second (vacation) home. A cabin in the mountains, about 150 miles from where we live. It’s much cheaper to get a second home mortgage than an investment property mortgage, but we would ideally like to get some rental income from the property as well. It probably wouldn’t be a lot, definitely not enough to pay the mortgage. I’ve gotten a lot of hemming and hawing from the mortgage specialists I’ve spoken with about whether we’d qualify for a second home mortgage. Is there a specific line lenders use to separate a second home from an investment property? Any rental income at all? Or is there a threshold amount, or a threshold number of days, or percentage of owner occupancy? We’re going to be 100% honest with the lender, but we’d like to know in advance if we need to commit ourselves to a certain limitation on rental use.

Thanks!
I appreciate the answers, but they don’t quite get to the heart of my question, so let me rephrase it.

The home would primarily be for our personal vacation use. But – since we care about not committing mortgage fraud and want to be sure we’re on the right side of the law – we need to know if ANY amount of rental income is too much for that type of loan.

What we have in mind is letting people rent it on weekends we’re not using it. It would never be occupied by a tenant for more than a few days at a time. No long-term lease. It’s in a ski area and I imagine we could find renters for some of the weekends we don’t use it during the winter months.

We would probably stay there several whole weeks during the year, and numerous more weekends, and would probably be the ones to occupy the cabin more than 50% of the time it’s occupied.

Would that situation qualify for a second home mortgage? Or would any rental income at all mean we’d need an investment mortgage?