All Forum Posts by: Eric O'Hair

I've found a lender who can do 15% downpayment so we are getting there. I have a few more emails into other brokers.  I'm determined to get this done at the best possible rate and terms.  I appreciate your guys' input.  It kind of kept me even keeled during this first roadblock. Thanks again.

Thanks for the information Nuhan. The terms they sent seemed somewhat restrictive.  I'll definitely shop around and get better terms.  

My wife and I are really wanting to start buying rental properties.  We have great credit, and have a little over $700 /mo to invest.  I inquired on a loan through Teachers Credit Union since they are our regular bank and lender(HELC).  We initially thought a $35,000 house would be a good place to start.  However the real estate agent we are working with mentioned he could possibly get us a triplex for $70,000.  The mortgage specialist initially said 5% down is what we would need, that'd be easy.  Apparently there was some type of miscommunication and she thought it was for a primary residence.  To qualify for a investment property the guidelines seem very restrictive and I want to ask if these are normal guidelines.  If they aren't( I really hope they aren't), could I get some suggestions and tips on where to go, would a bank instead of a credit union be a better bet? Are loans like this normally this restrictive? 

Down payment requirement 30% (no gift of fund allowed)

Max term is 15 yr fixed – current rate today is 4.125%

Must escrow for both property taxes and insurance

Credit score over 700 + (this is not an issue)

Property must be located in Indiana

Debt Ratio needs to be at 40% or under

3 months reserves for principal, interest, taxes and insurance .

Thanks for your help Bigger Pockets family.

Eric