Home Buying in Phoenix>Question Details

ultimateduner, Home Buyer in Phoenix, AZ

Mortgage options for me? NOT FHA

Asked by ultimateduner, Phoenix, AZ Wed Apr 2, 2014

Hey everyone so I want to buy a small residential property (35,000-45,000) to fix up and then resell either immediately or after a year or so. I believe my credit score is around 720-740 and I have around $2000 I can put down. What mortgage options if any, are available to me? It would be my first house technically but I do not want FHA since I believe you have to make that your primary address and I have absolutely no plans of doing that. Thanks for any all advice!

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Answers

7
Hi again!

My only other suggestion would be to contact a "hard money" lender; the interest rate will be much higher and I'm not sure what the fees would be but I know a lender in Phoenix that may be able to help you.

Email or call me for the information, if you're interested.

Best Regards,

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
520.240.9602
lmarkham@envoymortgage.com
https://lmarkham-envoy.mortgagewebcenter.com
0 votes Thank Flag Link Thu Apr 3, 2014
Try a credit union. Many other lenders won't get involved in loans that small. The costs associated with obtaining the loan are too much for them to make any money.
0 votes Thank Flag Link Wed Apr 2, 2014
I believe lenders require that on investment property purchase the buyer/s must have their own funds for down payment, closing and reserves. $2000 will be insufficient.
Good Luck
0 votes Thank Flag Link Wed Apr 2, 2014
Thanks for posting a great question!

If you can get the 20% cash down for the investment property, I have a few renovation products that can really help with your project! It sounds like a HomePath or EZ "C" might be the way to go!

It would be great to learn more about your goals and have the opportunity to help. Please feel free to contact me directly for more information.

Thanks again,

Ryan Middlekauff
Loan Officer

PrimeLending
450 N Brand Blvd #150
Glendale, CA 91203
310-913-9526
NMLS 1100772
0 votes Thank Flag Link Wed Apr 2, 2014
Hi there!

Unfortunately, most lenders will require 15% of the purchase price as a down payment on an investment property. If you can put down 15% of the sales price and are willing to pay a single premium mortgage insurance, you may be able to get a loan.

Also, I can only lend as low as $50,000 on an investment property; which means you would have to put at least $7,500 down.

Please contact me directly with any other questions or concerns.

Best Regards,

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
520.240.9602
lmarkham@envoymortgage.com
https://lmarkham-envoy.mortgagewebcenter.com
0 votes Thank Flag Link Wed Apr 2, 2014
FHA is only for owner occupied homes. For an investment property you would have to go with a Conventional mortgage, meaning you would need to put 20% down in addition to needing money for closing costs, taxes, and insurance. Unfortunately there just aren't any low down payment options for investment properties since they are a riskier proposition to banks.
0 votes Thank Flag Link Wed Apr 2, 2014
Also my income is showing 11,000 for my last tax return, which yeah isn't great, but currently making around 2100 a month
0 votes Thank Flag Link Wed Apr 2, 2014
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