which loan to get first?

[Feifei Zhang]

I am in a situation in which I have some savings and i would like to spend 80% of the savings on the down payment to buy a property for living and invest 20% as the down payment on a rental property in the near future. The living property which is in the Seattle area is more expensive than the target rental property, which is in southeast.

My question is since i am going to get two loans soon about the same time, which loan shall i get first to keep my total interest rate the lowest:, is it better off to get the loan for the more expensive living property then to get the loan for the less expensive property or there is not much of difference which one comes earlier? I kind of have the impression that people will get a higher interested rate buying a home when they already have a very expensive car loan. Not sure if the same logic applies here and maybe it varies from market to market, or lender to lender?

Can someone give some insights on this?

Thanks,

Feifei

[Jerry Padilla]

@Feifei Zhang

Your home purchasing is going to depend the loan size, credit score, down payment, type of property, not how many other homes you own. A primary home is going to to have a lower interest rate than an investment property. 

One thing to consider is starting out purchasing a multi-family property and living in one of the units. There is a low down payment portfolio option that I am aware of if the property is above conforming limits. Within conforming limits FHA may be an option as well as Home Possible - but the no income limits with Home Possible are going away soon.