Texas City, TX · Member since 2014 · 63 posts · 43 votes
Hello,
I'm looking around for an investor friendly bank that offers a 30 year amortization without being over 6% interest. I've checked around a few places without much luck.
When they find out it's going to be a rental property I stop getting the conventional loan rates of 4-5% for 30 years. And a 30 year makes my CoC ROI look so much better.
So, does anyone have any contacts or suggestions of places to hit up?
Texas City, TX · Member since 2014 · 63 posts · 43 votes
8y
I've actually only checked with smaller, more local banks. I guess I've always heard that they're better for/more willing to work with investors, but I'll definitely check out some of the big names now.
Real Estate Broker · MI · Member since 2014 · 594 posts · 183 votes
8y
Thomas Shaw claim the property as your primary residence, live in it, then you’ll get the low APR you want and then go through the proper channels and formalities of renting it.
Just a thought.
Real Estate Broker · MI · Member since 2014 · 594 posts · 183 votes
8y
Thomas Shaw just to make sure we are on the same page you buy the property in your name.
Buying the property in your name will allow you to get a lower APR since you’ll claim it as your primary residence. You’ll live in it and rent out rooms.
You would not Sublet/Sub-Lease since you own the property. You are the landlord(Owner), therefore, you would rent out the rooms or whatever you decide on. Sub-Letting / Sub-Leasing is when you take over someone’s lease. You’re confused on the terminology.
What’s my point? Get the property in your own name. Live in it. Go through the proper channels and formalities to get the property rent ready. You will become an owner occupied landlord(Owner).
Once you have paying tenants and have paid down the principle a bit you can use the rents as proof of income to refinance and at that time completely remove yourself from the property and no longer claim it as your primary residence.
The other option is to forget what I just said above, and perhaps pay points on a mortgage. “Buying down the rate” 1 point costs
1% of the mortgage. In other words, pay more up front now to reduce your rate. You would not claim it as your primary residence in this case.
Make sense?
I just read you got pre-approved for a 30 year mortgage at 5.5 percent. Pre-approved and Qualified are two different terms.
Let your mortgage broker explain the difference.
All the best!