You have a first and a 2nd mortgage, and the 2nd is probably at a higher rate. Is there a reason you haven't refinanced into one low rate mortgage?
Investment properties are almost always 20% down. You would want to consider either some of the smaller banks, like Bremer which is a community non profit bank. Can you believe that? It sounds like your best case scenario would be to refinance to leverage the investment property, IF you have equity. Banks will finance a certain percentile, but not 100% of the refi.
Lenders prefer long term loans, investment for rental over flip properties. Talk to a lender works with investment and can steer you in the right direction.
If that doesn't work, I could introduce you to someone who may be willing to do this on a contract for deed for you until you qualify for the loan and can refinance.
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That is a great question. And the answer is actually quite simple. You need to have an experienced loan officer look at your equity postion, along with your income and debt ratios, and run an application to determine where you are at. There are other factors that come in, but this is the first step.
The actual answer to your question about how difficult it is, is that it is not difficult to get a mortgage, as long as your situation falls into the guidelines.
Here is my recommendation. Please got to my website below and contact me. I will forward to you my loan officer's information. He is the best and most efficient loan officer I have found in over 10 years of doing real estate. On top of that, since I have a specialty in working with investors and understand the investor's world, I am happy to report that not only is he the best I have ever seen for working with my investor clients, but he is also PERSONALLY an investor. He owns a LOT of rental properties of every type. And what I have seen over the years is that my investor clients really like him a lot, because not only can he simply get them a loan, but when they have questions about anything related to rental properties, he has the answers and can help and guide them, as well. And I can say for a fact that this is and should be important to you, since most loan officers do not truly understand that investor world, not to mention participate in it.
But there is one more thing that I can possibly help you with. And that is that it is entirely possible that based on your situation, you actually may not be able to obtain a loan with your 20% down. Well, I recently had an investor in this position. He had a lot of credit and a bunch of money. BUt he was unable to get a loan. Well, I now have a good relationship with an investment firm that UNDERSTANDS this and is willing to work with investors and give them money. This investor client used them to do his first investment property earlier this year. And it worked so well that he is now purchasing two more!! As a matter of fact, we just secured two purchases this past week and they are both closing in 2 weeks! We are actually trying to get both of them closed on the same day, October 5th.
Please get in touch with me and I will gladly l introduce you to both of these gentleman and I do believe you will learn a lot and be able to purchase some investment properties with one or both of them.
Your employment, time on that job or a similar one, your earnings, your income-to-debt ratio, your credit score, your credit history, the property you wish to purchase, what type of property it is, the appraised value of that property, the neighborhood that property is located in, etc., etc. etc. All of those things and a lot more, is taken into consideration by very cautious underwriters.
You'll never know for sure until you talk to someone who lends money. Some lenders are better than others when it comes to non owner occupied properties and investment properties. For some lenders, it's their "niche", and for others, it's not.
My suggestion is that you let an experienced real estate agent guide you toward a few lenders who may be able to answer this, and all of your other loan-related questions. I can introduce you to a couple of very good and very experienced mortgage advisers who can review your situation, explain to you your loan options, help find a loan program that meets your needs, make suggestions, etc.
Call me. Click my ugly picture to get my contact info.