tina_chappell, Home Buyer in Santa Barbara, CA

I am a Californian who has lived abroad 30 years, am interested in buying 136 Haley as a summer rental.

Asked by tina_chappell, Santa Barbara, CA Tue Jun 26, 2012

At the moment I am able to put down a 20% downpayment . Is this enough? What things should I know about loans etc.?

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Answers

5
HI there-

20% down is certainly an option for investment properties in this price range; however terms exist from 25% down or more.

Additionally, some investors have requirements for a history of managing rental properties for the past two years.

I would be honored to discuss this further with you to see if this is a viable option.

Thank you,
Austin Lampson
NMLS#517060

Medallion Mortgage
3700 State St., #340; Santa Barbara, CA 93105
PH: 805-288-6163 or 805-450-4548
alampson@medallionmtg.com
1 vote Thank Flag Link Tue Jun 26, 2012
Hi Tina,

I definitely recommend you speak with a local lender directly. My personal recommendation is:
Austin Lampson
Medallion Mortgage
805-288-6163
alampson@medallionmtg.com

The qualification process is a little different when purchasing a second home. Depending on your income and expenses, you may be able to qualify for 20% down, but that's not always the case.

This property has a catch, though. It is owned by the city of Santa Barbara and is being auctioned off to the highest bidder. The big catch here is that all offers/bids will have to be free of contingencies and in as-is condition...Meaning this will likely be a cash sale. Now, depending on your finances you may be able to qualify for a loan product to suit this scenario.

Let's go over a couple of scenarios over the phone when you have a moment.

I look forward to speaking with you!

Sincerely,

Jake Ralston



805.455.9600
JakeRalston@gmail.com
http://www.JakeRalston.com
1170 Coast Village Road
Montecito CA 93108
1 vote Thank Flag Link Tue Jun 26, 2012
A 20% down payment for an investment property is sufficient, you do not need 25% down, in fact, Fannie Mae actually allows 85% LTV but finding the mortgage insurance for it is the issue.

I'm sure you realize there is more to qualification than what you asked about, so assuming you meet all of the other criteria, a 20% down payment would be fine.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue Jun 26, 2012
Income properties usually require a 25% down. A loan officer who I would recommend you speak with is Larry Urzua at 805.452.4776. He has some creative financing available. Some things to think about are: Do you own any other properties? Do you have good credit scores?

Offers are to be submitted by 8/22 at 10am with proof of financing or funds in a sealed envelope to be opened at the auction. Someone present at the auction could overbid a sealed offer though. Cash is always king at auctions, but not necessarily required in this case. How serious about the property are you? Offers need to be contingent free, so any inspections would need to be done ahead of time. And depending on the property condition, might not then qualify for financing. Would you be able to be present at the auction?

I'd be happy to discuss your options over the phone or in person over coffee.

Best,
Summer Knight
0 votes Thank Flag Link Tue Jun 26, 2012
Call me to know all the info. Im a mortgage Banker so I can explain everything.


Gabino Barrera Jr.
Mortgage Professional

SWBC Mortgage
23705 Crenshaw BLVD. Suit 101
Torrance, CA 90505
424-236-1655-Cell
310-891-1700-Office
310-872-5404-Fax

CA-DOC861438
License by the State of California Department of Corporations under the California Residential Mortgage Act
0 votes Thank Flag Link Tue Jun 26, 2012
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