Primary or investment?

Question

Should I acquire a loan on primary residence loan before an investment property? Seems like time is only thing holding me back from a loan, but dont want to get to point where I qualify for primary and can no longer get accepted for an investment loan.

Dave G. · Answer

@Christopher Tokarski do a house hack and kill two birds with one loan.

Erik Estrada · Answer

@Masha Rizzi Very well said!

Masha Rizzi · Answer

Echoing what @Erik Estrada said - some lenders do take your primary residence lean into account before doing a loan for an investment property.

If possible, a good alternative would be to purchase a primary residence that you can house hack either as a multi-fam or renting out a section of the house (My first primary home and house hack, I found a place where the 2nd floor could be made into an entirely seperate unit for the time I was there and then converted back and rented as a large multi-family home).

Loans on your primary home also tend to have lower interest and downpayment requirements that a loan for an investment.

So ideally (depending on your area), purchase a primary you can house hack with a primary residence loan, complete any renovations or updates, then do a cashout refi to purchase the next investment,

Erik Estrada · Answer

Most lenders will take into account if you own your primary residence before issuing a loan for an investment property. A better alternative is owning your primary first then once your property appreciates in value, do a cash-out refinance and buy your investment property. If you are renting, we work with some lenders that can finance without owning your primary residence. The catch is higher credit score requirements, proof of funds, and higher rates. Ultimately, it's up to you.

Andrew Bang · Answer

Grant Cardone would say investment property first, Dave Ramsey would say primary residence first, then pay if off and stay out of debt. Robert Kiyosaki would say "debt is an asset" get on a loan on both and 10 other properties.

Primary or investment?

Primary or investment?

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