Home Buying in Eagle Rock>Question Details

Mmlao27, Home Buyer in Eagle Rock, Los Ange...

will I still qualify for a loan with a great rate if i already own rental property out of state and i am purchasing my 1st residential home?

Asked by Mmlao27, Eagle Rock, Los Angeles, CA Tue Nov 10, 2009

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7
Mike Ford’s answer
you lender will show you how the rental impacts your qualifying.

you should qualify for an owner occupied rate and terms if the out of state rental doesn't kill your ratios.

most folks are surprised to learn that even a rental with true positive cash flow can be a deal killer when the lender make allowances for vacancies.
0 votes Thank Flag Link Wed Nov 25, 2009
Great question. It will not effect your interest rate, however, it will effect your debt to income ratio (positively or negatively based on what you report in your tax returns). This in turn will effect how large of a loan amount you will be approved for and eventually impact the purchase price of your new home. So a great rate IS possible, on how large of a loan is the question.

Please contact me with any additional questions or for an excellent lender referral who can run the numbers for you. And good luck!

Lauren Sullivan
Coldwell Banker - Brentwood West
11999 San Vicente Blvd
Los Angeles, CA 90049
(310)571-1360
laurensullivan@coldwellbanker.com
0 votes Thank Flag Link Thu Nov 12, 2009
Mmlao27, there are many people in your same situation. I'm hoping that you've built some equity in your investment properties - that will help! Now is a great time to buy a home.

There are so many details involved in securing financing and this forum can give you direction but now an exact answer. I will be happy to refer you to a few different lenders if you would like.

Best to you!
Dot
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Wed Nov 11, 2009
Generally, as said before, it will depend on your own personal financial situation-debt to income & your FICO. The lenders that I work with through HSL have extremely competitive rates and have in many cases been able to lock in rates 1/4 of a pt lower than other private mortgage brokers and direct lender. They also encourage getting a second pre-approval through them if you've already had one done elsewhere. Send me an email or call and I can give you their info.

Nicole Lindler
Prudential California Realty
Nicole@NicoleLindler.com
310.694.2288
0 votes Thank Flag Link Wed Nov 11, 2009
It depends on our debt/equity ratio and debt to income ratio
Talk with a lender, explain the situation, and see. It is really just about the numbers.
0 votes Thank Flag Link Wed Nov 11, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Yes, the IRS rule allow you to own 1 primary residence (must be owner occupy) and 1 vacation home. The loan rates for these 2 properties are generally lower than rates for investment properties.

Generally the loan rate for primary residence is the lowest; however, the loan rate is tied to the borrower's credit profile, verifiable income, down payment and the current market rates for either fixed or ARM rates.

The higher FICO score, higher income, and higher down payment lead to a lower rate, generally but not all the times.
0 votes Thank Flag Link Wed Nov 11, 2009
Hello Mmlao27,

Purchasing is a great idea in this market. I'm surprised you didn't buy for yourself first. It will be great to not be a renter anymore if you are.

The only way to know for sure is for a lender (I have some honest ones I can refer you to) review what your income property is vs what you make income wise. I don't see why not if your properties are cash flowing and I'd be happy to connect you with some lender that can help. To know what you specifically can qualify for they will need more data which will be something that can't be answered in an online post. Shoot me an email and I'd be happy to provide you with recomendations.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
323-899-2900
0 votes Thank Flag Link Tue Nov 10, 2009
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