Financing in Phoenix>Question Details

Shane, Other/Just Looking in 85335

Can i get approved to buy another home even though i just purchased one in february?

Asked by Shane, 85335 Sun Aug 2, 2009

Just wondering if anyone knows how i could possibly get approved to buy a rental home. With prices this low i would love to get a property or two for long term investments. Problem is i dont have the money to pay cash for these houses. I know how to rehab houses so i could even come up with 50 percent of the purchase price and still have the money for rehab. I guess im just wondering if its even possible for me to do something like this. I always hear that you can make money in real estate without using your own money. Just wondering if its really true.

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5
Shane,
Do not forget seller financing! This option is and will be more prevalent in the future with many of the current buyers having a foreclosure, short-sale or bankruptcy. Sellers that can not sell for what they want to sell for now, can structure a more lucrative deal via seller financing or lease options.
0 votes Thank Flag Link Fri Aug 7, 2009
Shane,

If you belive that you can make the payment on the inverstment property(ies) in addition to the mortgage you recently got , then you might be able to get approved. The guidelines to get you approved ar tighther than when you apply for your primary residence and you will most probably be required to give a larger down payment - but it can definitely be done. I work with a lot of those every day.

Let me know if you will need more detail or have any other questions or concerns.

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
http://www.SmartAZRealty.com
0 votes Thank Flag Link Sun Aug 2, 2009
In the current financial market, there are no programs out there that offer $0 down programs period. The best you can do is FHA and 3.5% down for owner occupied homes. For investors the best program that I have seen is 10% down and those are pretty iffy at best to get closed. If you can find a silent financial backer that is probably your best option. If you hear otherwise though, I would be glad to hear about it.
0 votes Thank Flag Link Sun Aug 2, 2009
Shane -
You absolutely can purchase additional homes as investments, recently after buying another home. But everything will depend on your credit, income, assets, etc. Typically, your looking at at least 20% down right now and you will need to be able to qualify for the new payments with your own income and have sufficient assets to cover all your mortgage payments for at least 6 months. I work with investors quite frequently to structure their financing in the best way possible. Please let me know if you need any further help.

Brian Cardenas
President / Mortgage Consultant
Antigua Capital Funding
Email: brianc@antiguacapital.com
0 votes Thank Flag Link Sun Aug 2, 2009
Shane,

Purchasing property as investment requires at least 25% down if the house is livable. Otherwise you would need a short term "hard money" loan that would give you the cash to buy, fix-up and sell. There are some rules that you need to be aware of when it comes to selling property that you recently purchased that would affect the financing options available to the buyer.
Give me a call and we can go over the fianncing part of it, then if you still want to buy I know real estate agents that work in that arena.

Tony
0 votes Thank Flag Link Sun Aug 2, 2009
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