Justhaynbay, Home Buyer in Palm Desert, CA

I am upside down in my mortgage but have no problem paying the payments. My question is- is it possible to get financed for an income property?

Asked by Justhaynbay, Palm Desert, CA Mon Jan 14, 2013

I have 50% for down payment

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Answers

3
Hello,

It is possible to still get financing. As long as you qualify for the PITI on both properties and your DTI meets Fannie Mae, Freddie Mac or a particular portfolio investor guidelines, there should be no problem with this.

Michael Abram
RPM | Los Angeles
Cell: (310) 995-0975
mabram@rpm-mtg.com
http://www.rpm-mtg.com/mabram
0 votes Thank Flag Link Mon Jan 14, 2013
When you are purchasing an investment property there is no requirement for you to have equity in any of the existing properties you already own - there is only a requirement for a down payment on the property you are buying.

Depending on the type of loan program you are using to buy the investment property you may also be required to have financial reserves (i.e. money leftover after the transaction closes) in the amount of 6 months of it's proposed PITI payment + 2 months PITI for each other investment property or 2nd home.

Shane Milne | Lending in all 50 states | NMLS #81195
0 votes Thank Flag Link Mon Jan 14, 2013
If you are upside down it will be extremely difficult and most likely impossible to refinance an investment property.
0 votes Thank Flag Link Mon Jan 14, 2013
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