Home Buying in 94582>Question Details

ardiedog, Home Buyer in San Ramon, CA

Loan for 3rd House

Asked by ardiedog, San Ramon, CA Sat Aug 31, 2013

We are looking to buy our 3rd home in the San Ramon, Dublin or Danville Area. We need to get a loan for up to 1 million with about 20% down. Our fico score is about 780 with income about $200k. Problem is that we don't have one or two years of rental history which most banks require in order to qualify for a loan. We
plan on eventually renting out our existing homes when we purchase the 3rd house to offset the mortgages. Are there any loans out there for us? Also, do we need to get pre-qualified by the builder's finance dept in order to put in an offer?
Any advice or referral you can provide would be helpful. ardiedog@yahoo.com
thanks, angie

Help the community by answering this question:



A few things here:

*If this property will be classified as a rental/investment, I'm fairly certain you will have some challenges putting down only 20% on a loan amount of this size. While jumbo financing has come back in a big way, it has done so less aggressively for rental properties. 25% to 30% down payment is more consistent with what we can offer on jumbo investment financing.
*As Claudia states below, rental history or property management experience is less vital on most programs than disposition of primary home and total debt service ratio. Your loan professional should be able to explain this for your scenario.
*Your builder may require you to get a pre-approval through them, and since you're gathering information anyway, this may be helpful.

If you have questions or if you think we can be of service, don't hesitate to get in touch.

Rob Spinosa
1 vote Thank Flag Link Mon Sep 2, 2013
Hi Ardiedog: I am a lender based out of Pleasanton/Fremont.
We look at the amount of equity in your departing residence. If there is 30% or greater, we will credit you 75% of the rent stated on the lease you will need to provide prior to closing.
If you have less than 30% equity, we will debt service you for the full payment. In either case, an active appraisal will need to be provided.

For you rental, we will look at the lease and the previous year's tax returns for the rental income. Two years is not necessary,

I would be happy to help. Drop me an email: cgravelle@divmg.com
1 vote Thank Flag Link Sun Sep 1, 2013
Well there are a couple of ways to do this one. But most likely I can do this but would need more information.

Rich Littlefield
NMLS 287206
Tri-Emerald Financial Group, A direct lender
0 votes Thank Flag Link Tue Sep 3, 2013
I can certainly help you out there. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Sat Aug 31, 2013
Sounds like you need to start being a landlord. Start renting out one of those homes now. You are going to need two years of rental history on your tax returns so if you start before the end of this year you will already have one year under your belt. Lenders are changing their requirements all of the time, so while you are waiting for the two years to pass keep looking at loans and building a relationship with a lender.

J.R. Thrasher
0 votes Thank Flag Link Sat Aug 31, 2013
This is where a great lender relationship comes in! Contact:

Lauren Abrams | Mortgage Specialist

Individual NMLS #244104 Corporate NMLS #1820

2000 Crow Canyon Place, Suite 100
San Ramon, CA 94583
Direct: 925.983.3173

Mobile: 925-918-0227
E-Fax: 925.406.0509


When you are ready to look for a home, Call, Text or email me!
Debbie Olson
0 votes Thank Flag Link Sat Aug 31, 2013
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