Different ways to finance a second/investment home

Asked by mrs dwight k schrute, 21157 Sun Jan 18, 2009

We would like to take advantage of current market conditions to buy a second home. Initially, it will be used as a rental property for an elderly family member, then, when the time arrives, either re-rent or sell the home. We are interested in finding out what type of financing options are out there for this type of purchase. We have paid off our existing residence, so $0 mortgage outstanding, have excellent credit, very little debt, and our income will easily cover the mortgage payment. Is there any way to finance this purchase without going through a tradtional investment loan which requires 20% down? Any creative ideas out there?

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5
Gwenn Tanvas, Mortgage Broker Or Lender, Green Bay, WI
Sun Jan 18, 2009
Hi Mrs. Dwight - Interest rates on investment properties are much higher that interest rates on a primary residence. Since your current home is mortage free, I would suggest looking into a "cashout refinance" on your primary home to purchase the second home. Interest rates are at an all time low. With your great credit and low debt you will be sure to qualify for a great rate and term to suit you needs.

A local mortgage planing specialists can assist you in the process. Consultations/pre-qualification are no cost. If you would like a referral to a qualified professional in your area, I would be happy to pride you with the name of a local professional. I hope you have found this information helpful. Make it a great Sunday Afternoon!

Gwenn Tanvas
Certified Mortgage Planning Specialists
3 votes
Could you give me the name of a Qualified person in my area? Amherst, Ohio 44001. Thank u in advance. Linda
Flag Wed Apr 20, 2016
voices member, , 21117
Sun Jan 18, 2009
Hi Mrs. Schrute. Do I get the prize for being the first realtor to get the name reference? Good one! In any case, if you are looking for a savvy realtor who can help you through the process beginning with the financing, please contact me. Also, incidentally, I live in Westminster and am familiar with much of the inventory. I can be reached at 410-615-0990 or LDevnew@cbmove.com

Lisa Devnew
Coldwell Banker
0 votes
Martin Young, , 22310
Sun Jan 18, 2009
Good Afternoon Mrs. Schrute, My name is Martin Young and I am local Mortgage Advisor here in the D.C. Metro area. If you are collecting rent on the property it would have to be classified as an investment property and not a second home until you are no longer collecting rent and only if it is more than 50 miles away from your current primary residence. You certainly could refinance your current primary residence to buy the investment. Best case scenario would get you below 5% on a 30 year fixed right now. Please do not hesitate to contact me directly if you have any further questions.

Sincerely,

Martin Young
Finance USA
571-235-7198
mr.young@cox.net
Web Reference:  http://financeusa.us
0 votes
Marty S, , Irvine, CA
Sun Jan 18, 2009
I have several options for you. Second homes are tough in today's market, but if you plan right, the transaction can go smoothly.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes
Gwenn Tanvas, Mortgage Broker Or Lender, Green Bay, WI
Sun Jan 18, 2009
Hi Mrs. Dwight - Interest rates on investment properties are much higher that interest rates on a primary residence. Since your currect home is mortage free, I would suggest looking into a "cashout refinance" on your primary home to purchase the second home. Interest rates are at an all time low. With your great credit and low debt you will be sure to qualify for a great rate and term to suit you needs.

A local mortgage planing specialists can assist you in the process. Consultations/pre-qualification are no cost. If you would like a referral to a qualified professional in your area, I would be happy to pride you with the name of a local professional. I hope you have found this information helpful. Make it a great Sunday Afternoon!

Gwenn Tanvas
Certified Mortgage Planning Specialists
0 votes
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