Was shopping around for a single family home in Texas and wasn't aware that investment properties require 25% down.
I mentioned to the agent that I might live there for a year to which he replied that he could do a primary home mortgage (lower interest rate + 5% down), but what happens if I do that then change my mind and just rent it out? Isn't that mortgage fraud?
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03-24-2024, 03:31 PM #1
Can you buy an investment property with 5% down?
Monster0ultra self proclaimed "Chad" face pic looks like vtech school shooter: https://i.imgur.com/z2m6Why.jpg
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03-24-2024, 03:32 PM #2
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03-24-2024, 03:46 PM #3
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03-24-2024, 03:47 PM #4
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03-24-2024, 03:56 PM #5
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03-24-2024, 03:58 PM #6
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03-24-2024, 03:58 PM #7
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03-24-2024, 03:59 PM #8
It's an FHA 203b your realtor suggested. That would work, but you have to live there for a year and then can rent it out. Also, as Oliver said, you could do owner financing.
A lot of people have very low first mortgage rates, so you will see assumptions moving forward. One option would be buy the property for the mortgage amount and have the seller hold a 2nd mortgage for the seller's profit, put the property in a land trust and have the beneficial ownership signed over to you. The mortgage servicer allows you to put a property in a trust without triggering the due-on-sale clause and you as the new owner is not public record.6'5" 210 lbs, 10.9% body fat
Bodily exercise profits a little, but godliness is profitable unto all things.
Willing to create a thread "Is Paul Jerome a Larp" if anyone with a username 5 years or older accuses me of fraud. Any takers?
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03-24-2024, 04:13 PM #9
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03-24-2024, 04:16 PM #10
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03-24-2024, 04:23 PM #11
How do you accomplish this in practice?
It seems like you'd have to buy the property, then convince the second mortgage holder it's worth more than you just paid a week ago.
Or pay a super high interest rate since the second mortgage holder knows they'll be left holding the bag if anything goes wrong.
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03-24-2024, 04:27 PM #12
You set up the second charge prior to finalizing the purchase, not afterwards - although in theory you could do it anytime between signing and closing date ( but you need to be able to close with cash down ).
Not super high interest rates either.
It helps to know lenders on a first name basis.
The property does have to appraise higher than what the purchase price is - but why would you purchase an investment property that isn't a good deal?
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03-24-2024, 04:29 PM #13
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03-24-2024, 04:32 PM #14
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03-24-2024, 04:34 PM #15
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03-24-2024, 04:46 PM #16
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