Has the mortgage melt down stopped the flow of mortgage money in Phoenix for rental properties

Asked by Peter Robison, Calgary alberta canada Mon Mar 10, 2008

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Scott McGrane, , Arizona
Thu Mar 13, 2008
Hi Peter,

All great answers thus far. Lending guidelines have tightened considerably; as I am sure you are aware. What makes it more difficult is you really want to put 20% down. The reason I say this because with rentals the goal is typically to cash flow them. If you don’t put down 20% you are going to pay Mortgage Insurance and that’s going to cut into your bottom line. Couple with that interest rates I have been seeing lately for investment properties are upwards of 8%. Another thing to consider is a lot of potential investors are getting stopped at the door because they do not have the required two years landlord experience. With that said, if 20% down is do-able and the landlord experience is there, I know there are still some attractive programs out there to reward you. I would look into an investor like CITI Mortgage. If you would like me to contact their wholesale department for you, I would be happy to assist.

I hope this helps. Great questions and best of luck.

Scott McGrane
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Jerry Murphy, Agent, Anthem, AZ
Tue Mar 11, 2008
Hi Peter,

Yes there are still options out there to finance investment properties. As some of my colleagues have noted previously the requirements are tighter and the lenders are requiring larger down payments on these properties. However, there are some fantastic values down here right now. The bank owned properties are priced at around 2001/02 levels now.

For more information on the Phoenix area real estate market please visit our website at:

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James Wehner, Agent, Scottsdale, AZ
Mon Mar 10, 2008
The mortgage melt down has impacted investor ability to purchase rental properties, but has not stopped the flow of mortgage money. What is has done is require investment purchasers to put down a minimum of 15%. The recent change to 15% down has occured since Maricopa has been deemed a declining market, which also effected the primary residence purchasers requiring them to put a 5% minimum down payment.

I work with investors who have been taking advantage of the market times and purchasing REO properties then leasing them out for positive cashflow. If I could be of assistance in your investment purchases, let me know.
Web Reference:  http://www.jameswehner.com
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The Amy Jones…, Agent, Chandler, AZ
Mon Mar 10, 2008
I have worked with several Canadian buyers who are purchasing rental properties. The are still programs out there. Let me know if you would like a referral to a mortgage broker or two.

Amy Jones
Web Reference:  http://www.amysellsaz.com
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ILONA POKA, Agent, Chandler, AZ
Mon Mar 10, 2008
Hi Peter
I'm not sure exactly what you mean. Flow of Mortgage Money? There are still mortgages available for investment properties. The criteria is a lot stricker for obtaining an investment mortgage.
Is that what you mean?

Web Reference:  http://www.ilonapoka.com
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