Home Buying in 30188>Question Details

Bgrella1205, Other/Just Looking in Atlanta, GA

What are the loan requirements for a rental property in Woodstock, GA? Will my primary residence FHA loan effect my chances of getting approved?

Asked by Bgrella1205, Atlanta, GA Sun Aug 26, 2012

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Talk to a lender before you spend to much time thinking about this. Lending rules have changed 100% in the past 5 years. Good Luck to you , Tom Inglesby, Broker RE/MAX Equity Group
0 votes Thank Flag Link Tue Feb 12, 2013
Hi Bgrellla 1205,
Your best bet would be to contact a Private Lender. Banks and Conventional Lenders are hesitant to put their money out unless they can be sure of getting their money back. They want their investment back plus interest. They do NOT want the property back
A Private Lender will consider your income and your ability to repay the debt and the Appraised Value of the property you're trying to finance. If you can present to the Lender the financial viability of your rental property to break even and cover expenses and make a profit, that will have a positive influence on their final decision.
Being an income property, you will have to use Hard Money to finance it. Most Hard Money Lenders are short term lenders, The average term of a Hard Money Loan is from 6 to 18 months. That doesn't give you much leeway to repay the loan. Another thing to watch out for with Hard Money Lenders is in inclusion of a "pre-payment penalty" clause. This well cost you should you pay the loan off early.
Once you have acquired the property and have a history of profit with it, you will have a better chance to qualify for Conventional Financing.
May I suggest a company that I have recent experience with and have serviced my non-conforming clients very satisfactorily. They are licensed in the State of Georgia for Home Mortgages as well as Hard Money Loans. They will lend up to 3 years on Hard Money Loans which would give you more time to establish a history for your investment. They will never include a pre-payment penalty clause in their agreements.
Their contact information is:
The Westmoore Group, LLC
http://www.westmooregroup.com
Ph: (646) 801-6190
Fx: (646) 619-4291
The Westmoore Group, LLC is a licensed lender in the State of Georgia and operates under the license #30544
It's worth looking into. At the very least they can advise you as to how to go forward.
Best of Luck
0 votes Thank Flag Link Sun Jan 20, 2013
For an investment property purchase, you would need a 20%+ down payment. If you purchase a HomePath property, then that minimum down payment is 10%.

You would have to qualify with both mortgage payments along with your other debt.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference: http://www.homepath.com
0 votes Thank Flag Link Mon Aug 27, 2012
Most lenders are looking for 30-50% down and you must be able to have a debt to revenue ration to support both payments. Best to speak with a lender about qualification for an investment loan.
0 votes Thank Flag Link Sun Aug 26, 2012
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