Updated over 9 years ago on . Most recent reply
Conventional Mortgage Advice
Purchasing an off market 4-plex in Southeastern Iowa. Not under contract, not wholesale, so no super tight timeline. I'm just looking for suggestions as to getting a mortgage. The guy I'm buying from is completely remodeling 3 of the four units, and I may be able to talk him into kicking the last lady out, who will be gone before closing anyways, and remodeling all 4. The exterior of the house is sound, and the only big expense I foresee to come my way in the next 7 years is replacing all of the windows in the house. Will have house inspected none the less, because I'm no pro in that area. The apartment will draw right at 1775 a month. Purchase price of 70k, pending inspection and appraisal. I would say ARV will be somewhere around 90k with the cash flow it is producing.
Im looking for a conventional mortgage 15 or 30 year, will pay off in ten easily. What are my best options here? Im willing to use my car as extra collateral on the home, and have 20% to put down. The local bank I've called thus far, of which Im a member, has all only offered me a 5 year ARM 2% cap each year, 6% cap on the life of the loan, starting at 4.5%. I think this is ludicrous. I don't see mortgage rates falling much in the foreseeable future, so I'd like to have a fixed rate 15 or 30 year. Am I not going to be able to secure something like this? I've also got calls into state farm, and US bank for a quote because they both have local branches, and I'm a client of both. Can anyone point me in the right direction for this?