Is this sales agent bullchitting me? Real estate related

[TugOfPeace]

So I visited this neighborhood which was new construction. Wanted to buy an investment property for 5% down, was told its not possible and that investment properties require 25% down.

Today he texts me saying he spoke to his manager and that I could do 5% down since I don't own a home yet and it would be my first purchase.

Isn't this mortgage fraud?

[Bushmaster]

So I visited this neighborhood which was new construction. Wanted to buy an investment property for 5% down, was told its not possible and that investment properties require 25% down.

Today he texts me saying he spoke to his manager and that I could do 5% down since I don't own a home yet and it would be my first purchase.

Isn't this mortgage fraud?

Talk to the lender first and disregard anything the real estate agent tells you.. You should have a letter of approval from them, and whatever % you need to put down the lender will tell you.

[LinuxJon]

Everyone claims an intent to move into their rental properties and just never does. Yes, it's technically mortgage fraud. But there's never consequences, and that's why people do it. I wouldn't because I'd rather not play the games and wouldn't buy a property with PMI. But this is not an unusual game people play.

[TugOfPeace]

Talk to the lender first and disregard anything the real estate agent tells you.. You should have a letter of approval from them, and whatever % you need to put down the lender will tell you.

The person I'm talking to is a sales agent who I assume is speaking for the lender, but I'm not sure.

Everyone claims an intent to move into their rental properties and just never does. Yes, it's technically mortgage fraud. But there's never consequences, and that's why people do it. I wouldn't because I'd rather not play the games and wouldn't buy a property with PMI. But this is not an unusual game people play.

Yea I clearly told him via text that I wouldnt live there so I feel a bit skeptical doing this when there's written proof of intent that I am willing to commit a felony.

[DrugsToGetBig]

mortgage fraud??


lmao what a load of ****ing ****

**** those bloodsuckers

[Bushmaster]

The person I'm talking to is a sales agent who I assume is speaking for the lender, but I'm not sure.

No.. The agent can't speak for the lender. Again, completely disregard the real estate agent and speak to the lender first. Tbh I thought most agents won't even give you the time of day UNLESS you have your pre-approval letter from them.

And FYI give some of the online things like Lending Tree a try. I filled out an application for my house there and within an hour the phone started ringing. This lender offered a better interest rate, the next one could work with the down payment, etc. I thought it was a much better way to do it rather than going to "A" single bank.

But speak to lender --> Get approved --> Get pre approval letter --> THEN take letter to real estate agent.

[~Hades~]

There’s no set required amount to put down on an investment property however the norm is 20%. It’s going to vary by lender tho. I have one that does 15% minimum and one that does 25% minimum.

The last few years you could get in for 0% depending on how you structured the deal but with the changes in the market, lenders have changed that position.

[2011change]

OP, never ever trust Real estate agents. These ****ers do not act the best interest for you. They will try to swindle you for comission money. More money you put down or high the selling price, the more money they make.

This is why I am anti NAR, ANTI real estate agent. These ****s have no education, former sloots and now act they are god aka REAL ESTATE AGENT. We do not need these ****ers

[Godfrd824]

So I visited this neighborhood which was new construction. Wanted to buy an investment property for 5% down, was told its not possible and that investment properties require 25% down.

Today he texts me saying he spoke to his manager and that I could do 5% down since I don't own a home yet and it would be my first purchase.

Isn't this mortgage fraud?

No. But you will have to live in the house for a year minimum.

[ogrelook0ultra]

The funniest real estate related matter regarding OP is that he made a thread complaining about cockroaches.

OP is Indian, LOL @ the lack of self awareness.

[Destor]

I did 5% on my first house to live in and then <10% on the second one while making the first one a rental

[WiseOldApe]

anybody who does sales is bullsh*tting you

[BullittEV]

Why would you think a real estate agent(sales agent) dictates bank terms? My real estate agent can only refer a bank(lender) to me and from there its out of his hands.

Why dont you buy your actual first home instead of an investment property?

[pondus_levo]

Why the **** would you buy a rental when you don't own your home? You realize rent will never cover your total cost of ownership, right?

[SmokinAnChokin]

Why the **** would you buy a rental when you don't own your home? You realize rent will never cover your total cost of ownership, right?

miscers think they can mortgage a house and rent it out for 500-1000/mth more then actual cost with ease

little do they know

[Anachron]

miscers think they can mortgage a house and rent it out for 500-1000/mth more then actual cost with ease

little do they know

$500-$1000 more is amateur hour, wouldn't touch it with a pole.

[OliverHeldens]

This guy is advising you to buy a home as your primary residence then never move in and rent it out.

It's technically not legal, but as long as there aren't restrictions in the complex for rentals you'll never get caught.

Regardless, I can't imagine the cash flow numbers work on this type of deal in the current environment.

You need to find a 4-Plex and get an FHA loan with 3.5% down and live in one of the units. Then move out after a year.

[ScrillaIsBake]

The thing is they don't have your best interest in heart.

My real estate agent was against me putting in bids below listed price, like fuk off it's not like I'm lowballing them. Whatever gets them paid the most

[Bushmaster]

So I visited this neighborhood which was new construction. Wanted to buy an investment property for 5% down, was told its not possible and that investment properties require 25% down.

Today he texts me saying he spoke to his manager and that I could do 5% down since I don't own a home yet and it would be my first purchase.

Isn't this mortgage fraud?

Why the **** would you buy a rental when you don't own your home? You realize rent will never cover your total cost of ownership, right?

And then there's that.

OP stop trying to play the hardcore investment baller role and buy a house of your own first lol.