Financing in Columbus>Question Details

Brenda, Renter in Columbus, OH

is it possible to buy a first house as an investment property. i am staying with relatives now, and not ready to move yet.

Asked by Brenda, Columbus, OH Thu Aug 8, 2013

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It is possible depending on the loan and your finances. Invest properties usually require 20%-25% down payment depending on the loan-to-value ratio. Also, a minimum credit score of around 620 will be needed in order to get a loan for a investment property. When it comes to your income and expenses, you usually need an debt-to-income ration that does not exceed 45%. Lastly, the loan can affect your ability to own an investment property. For example, if you try to get a Freddie Mac for an investment property, they require you to have 2 years of landlord experience.

I hope this helps and good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Mon Feb 24, 2014
Hi Brenda,

Heather has the right idea. To get the best options for financing you might want to consider a duplex or multi unit home. This way you can move in one of the units and rent out the others to pay the mortgage payment. In most cases, you can normally cover your entire mortgage payment with a renter in the other unit you own. The best thing about this besides living mortgage free is that you can get in the house as your primary residence and you can qualify for the $0 down or 3.5% down loans.
If you are interested in learning more give me a call. I would be glad to explain everything in a quick call. We also have same day preapprovals. My number is 614-989-4812..

Thanks
0 votes Thank Flag Link Thu Aug 8, 2013
Brenda,

It does depend on the financing options available to you. If you are interested in beginning an investment property portfolio, you might consider buying a duplex, so that you could live in one side and collect rent from the other. If you find the right property, you could essentially have the tenant paying most...if not all... of your mortgage! If you are not working with a Realtor, please consider giving me an opportunity to interview for the position!

Heather Dunn, Realtor
Keller Williams Excel Realty
Ph: (614) 560-9106
heatherdunn@kw.com
heatherdunn.yourkwagent.com

2013 Columbus Realtors Rising Star Award Winner
2013 Columbus Realtors Young Professionals Network Chair
2013 Ohio Association of Realtors Director
2013 Womens Council of Realtor Vice President
0 votes Thank Flag Link Thu Aug 8, 2013
Hi Brenda,

Very interesting question. Your living with relatives but want to purchase a home for investment purposes. If you plan on not living there and renting it out your lending cost and down payment requirements will be substantially higher. The short answer is yes but there are many factors that need to be considered. If I may pose a few questions for you.
1. At what price point were you looking at?
2. Have you spoken with a lender or is this a cash transaction?
3. Have you set aside funds for down payment and closing cost?
4. Have you considered buying a double or duplex where you could live on one side and rent the other side out?
5. What location or area were you considering?
6. What time frame?
7. Are you currently working with a licensed real estate agent working just for you on your behalf as a buyers agent?

I am available for a free consultation in regards to your investment goals and to help you sort out and prioritize to get you through the process of buying and investment property. I have assisted other investors in acquiring income producing property. Please call me at 614.288.0423 to schedule an appointment with you to get this moving forward.

Respectfully, Jeffrey Paeltz, ABR, SFR
0 votes Thank Flag Link Thu Aug 8, 2013
Brenda I would be happy to help you and discuss options regarding your investment. Feel free to give me a call anytime today 6143520723
Thanks and hope to hear from you!
0 votes Thank Flag Link Thu Aug 8, 2013
Yes, where are you looking to buy
0 votes Thank Flag Link Thu Aug 8, 2013
Yes, it's possible. However, your interest rate will be higher, your closing costs will probably be higher, and you will probably need 20% down vs. 3.5% with an owner-occupant. Very few first-time buyers qualify for an investment property.
0 votes Thank Flag Link Thu Aug 8, 2013
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