Most conforming lenders have a problem with lending to someone that owns 4 or more properties. There are non-conforming lenders you might want to consider who do portfolio loans depending on your financial stability and not the strict Fannie Mae type guidelines limiting properties owned and other requirements. Compass bank, 1st Bank and some other local lenders may There down payments can sometimes be more flexible, whereas the traditional lenders will normally want about 25% down. That would put you outside of the Berkeley area price range even with $25,000 down. Also, I wouldn't limit myself to foreclosures. They are not always the best deals out there in every situation. Congratulation on making these positive moves with your real estate and financing. Let me know if I can help.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
There will be three main factors a lender will look for:
1) What is your history of managing rental properties, or how long have you been a landlord?
2) Are all your loans currently held by the same lender?
3) What is your Debt-to-Income ratio?
Lenders will be able to determine your eligibility with these facts. A two year history of being a landlord will allow for Conforming products, which come at better rates, and more lenders are willing to offer this product. Most lenders have a limit of how many loans they will hold for an individual, but are not concerned with how many total rental properties the borrower has -- so long as they are within Fannie Mae guidelines (currently 10 investment properties) and you've made your payment on time. The number of loans one lender will hold varies depending on the lender, but if youâ€™re capped at one you can get an offer from another. That's why it's smart to work with a good mortgage broker as they have relationships with multiple lenders and can find you the deal best suited to your needs.
Give me a call at 720.280.0441, and I'll be happy to get you pre-approved for a 4th property today.
Highlands Ranch Mortgage Broker
You have to figure that you will be required to put 20% down so you are looking at about $100,000 properties which is good for cash flow. In regards to REO's it doesn't matter to me if the home is a foreclosure or private seller; if it is a good deal buy it. Don't get hung up on foreclosures keep your eyes open for all deals.
Lastly, if moving out of the neighborhood includes southern CO such as the Pikes Peak Region then take a look at my profile and let me know if I can be of service.
All the best,
The first thing like you said is can you get a loan that will work for you and then I can help you find a home.
I guess you are renting these homes out?
I have a few lenders that I work with that can answer your finance questions. I know it will depend a lot on you debt to income ratio.
I would like to help. Contact me through my website.