All Forum Posts by: Mike Dugan

Trying to think ahead about the following scenario:

1.  I sell a house that has underlying mortgage still on a land contract, which put me at risk for a due on sale trigger (understand the risks of note being called from many prior posts).

2.  When I go to purchase a second or third property and need to show income against underlying mortgage of property sold on land contract, I will only have a land contract to show income, not a rental agreement.  

3.  Will that cause concern to the lender?  Trying to get any input from people having done this, and also perspective from a lenders point of view.  

4.  Thinking that if I get loan for new property from a different bank, might be OK.  But if I try to get another loan from the same bank that gave me the first mortgage, wonder if someone in underwriting in process of verifying income against mortgage might raise a flag: 'why does one of our mortgages have a land contract against it...'

Just trying to prep for this scenario...

thanks

Mike

@Melody Everett-Neddo, yes, will be checking with them - have my car loan and credit card with them

thanks

mike

@Nick Meister, thanks for tip

Aaron, thanks for info - will keep them in mind

Think I have my first single family residence ready to pull the trigger on.  84k purchase price.  Have 20% down and wanted to know of Grand Rapids Michigan lending institutions that are investor friendly.  Credit score, w2, debt to income are all good - will qualify for conforming products without issue.

Who would you recommend?  

Thanks

Mike

thanks for replies!  No, this was just a weird situation.  Have a brother/sister who inherited house, brother is being a jerk, and sister has legal right by herself to sell me house, but brother lives in.  She wasn't sure if he had maintained insurance policy or not.  I was just trying to cover my bases while he is evicted and she sells me house.  I will just have to make sure she proves/or acquires insurance as part of deal.

thanks

mike

Has anyone ever gotten (can you legally get?) property insurance for a property that you have under contract?  I have a situation where I can get a house for a great deal, but it will be a somewhat long due diligence/closing period - 60 days or so.  My fear is that seller might let insurance lapse, something happens to house, etc.  

Any thoughts?

thanks

Mike

thanks for input!

I believe from reading posts here on BP and other sites that to have my credit pulled for a new rental property will probably cost me about 5 points on my credit score for about a year.  I am planning to buy 6 houses in the next year which will require me to have my credit looked at every couple of months.  Based on the above assumption, am I going to end up with a 30 point drop over the year?  Any way around this?  thanks for any input....

Love Rincon!  We are scheduled to be there for 2 weeks right after Christmas this year.  Wife and I have been there at least 5 times, and hope to have a place there some day as well.  Let me know if you need any legwork done down there during that time

Mike