Account ClosedEven with high interest rates, lots of folks investing or buying homes do well with FHA loans because of small down payments and good loan terms.

Option 2 with second lender is, get an FHA loan at 3.5% and use the concession to buy discount points and bring a 6.2% interest rate down to a 5.4% permanent buy down, putting me at around $3,450.00 monthly PITI and also adding 8k to the top of the loan for mortgage insurance.

Always better to do each loan solo.

Based on a value of $165k, 75% LTV would make your new loan amount $123,750.

So the loan for the rental shows as a debt but the income is not reported to the bank where we are trying to get the new loan.

I already used up my VA loan on two properties in Washington state.

When I was stationed in Northern VA, high costs had me stuck until I sold my Corvette to meet my DTI ratio and get a condo using my VA Jumbo LOan—one of my best investments.

@Kevin Rodriguezif you take out an owner occupant loan, then you do; talk to your loan officer for more details.

of course this is a correct description but lets talk a bout reality.very few loans for most investors will be non recourse unless they are very large loans but the average under 1mil loan 97% of the time will be full recourse unless the lender is not ready for prime time.

The terms on the loan may not be in your best interest.