Acquiring My First Loan on Investment Property

Acquiring My First Loan on Investment Property

Lender · Mount Airy, MD · Member since 2016 · 52 posts · 3 votes

Hello everyone. I was wondering if anyone could lend their advice and give me some general direction towards obtaining my first loan that I will be putting towards 3 single family homes, which will be bundled together for around $150,000. I am 22 years old and just graduated from university last week. I have just recently accepted a job offer from a company I interned for that winter and will be making 36k this year. I have saved $30,000 dollars and have no debts accept for $19,500 student loans that I don't have to start paying off until December with a 4.5% interest rate ($220/month). I also have a 720 FICO credit score and will be living with my parents rent free for a year. 

With that said I have a solid credit score, decent income, enough for a 20% down payment, and little debt. However, I have not had stable employment for the past two years, but have worked/held internships every summer and winter since starting college (September 2012). Now the investment on the houses is solid, I just need the loan and am willing to accept the 4-6% interest rate that comes with investment properties. 

What is my best course of action to ensure I get the mortgage by mid July (month and a half)? Some final notes are that my father is willing to co-sign or co-borrow on the mortgage. He has been employed in the same industry for 35 years, has an income of 100k/year for a company he's been working for 10 years, a credit score of 740, and a good debt-to-income ratio. 

What would you recommend I do? For anyone who replies, I sincerely appreciate it. 

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  • Investor/Consultant · Sacramento, CA · Member since 2011 · 175 posts · 41 votes
    10y

    With your down payment, credit score and new job, you should be able to get a loan no problem. If not, post in the marketing section here looking for hard money lender and you are sure to find many that reply.

    Or you could try one of the lending sites specifically for real estate like LendingHome.com or something similar.  But I think you sound very low risk and smart and you should have banks fighting over your loan and making them bid down on the rate. Shop around. Many will take you with what I read above. Make them work for it

  • Lender · Chicago, IL · Member since 2015 · 608 posts · 70 votes
    10y
    Congrats Sean on graduating. You could partner with your father on your first few deals and branch out on your own after you have the experience. With your credit score you may be able to obtain up to $150,000 with 0% interest the first year and can use that as an downpayment as well. Like a line of credit.
  • Paul DefnginPro Member
    Lender · Rockville, MD · Member since 2008 · 498 posts · 199 votes
    10y

    @Sean Forner qualifying for an investment property is easier than a principal residence. The biggest hurdle for investors is the down payment and reserves if you're looking for conventional loans, which sounds like you have. 

    Good luck and let me know if I can assist with anything. 

  • Lender · Mount Airy, MD · Member since 2016 · 52 posts · 3 votes
    10y

    We did not get pre-approval from Wells Fargo. The mortgage broker said that our debt to income ratio was very low. Also, our credit scores indicate that my dad and I are very reliable. However, they had issues with our source of money for our down payment. My father just refinanced his mortgage and will be receiving $20,000. Also, we have two friends (investors) that both have committed to giving us $6,000 each. Also, between my dad and I we have about $7,000 in the bank and will be able to save $9,000 more by closing. Why did we not get approved? It doesn't make any sense. We were thinking about getting financing with QuickenLoans or NASA federal credit union. We both really want to capitalize on this opportunity. What should we do for the down payment?

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