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Updated over 8 years ago on . Most recent reply
Pre-approval Financing
Hey everyone!
Should I try getting pre-approved through a bank for a rental property? I don't have cash on hand, but I do have access to people willing to lend money for a percentage of course. I was thinking I could try to get pre-approved on a mortgage and then use my lenders for the down payment and repairs (if needed). What are you thoughts on this strategy. Is it too risky? Should I just save my butt off for the down payment? I do have other student loan debt that is consuming my extra cash. My wife and I are putting $500 extra a month towards our debt. We really want to be consumer debt free. I'm exploring all options, so feel free to share ideas! Thank you for your time!
Most Popular Reply
Hi @Joshua Boyce,
Unsecured loans cannot be used for down payment or cash to close on an investment property.
Loans secured by the subject property also will not work for various reasons relating to CLTV.
Do you own other real estate that your folks could secure the debt by? That CAN be used for down payment and cash to close, no different than when people use HELOCs for down payments.