Getting 2 mortgages for 2 properties

Hey Ron.. You should contact a local mortgage broker and sit down with him to discuss your options and plan a strategy.. Typically, the write offs are much greater on the investment vs. your primary home... so if you have the choice, you should finance as much as you can on the investment.. But your question has so many variables, that it's impossible to list them all out here on an internet post.. My personal opinion is "Cash is King"... I would rather have the money in the bank than sitting as equity for a home.. The value of the home will increase over time whether it has a mortgage on it or not.. Put the cash in the bank and finance what you can.. The best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

The interest rate on the investment property will be a little higher than on a primary or secondary residence. Most lenders require a minimum down payment of 25% on investment property. To avoid mortgage insurance on a primary or secondary residence, you need 20% down. With rates as low as they are, my guidance would be to put the minimum amount down and finance the rest at these great rates. If you are not sure if you will qualify for both loans, then meet with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, we are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

It is usually easier working with only one Mortgage Banker/Broker. If you are planning to do both of these at the same time and can't find one that operates in both states (and many of us do), you will likely have issues. If you can't find one, then start with the first Banker/Broker in the state where you intend to purchase the investment property. Have him work up a scenario based on the presumption that you have just closed escrow on the house. By including that information, he should be able to tell you if you are going to have issues qualifying for both. Then you can decide. I would advise against trying to do both loans simultaneously with two different lenders. I've seen deals explode because an underwriter is uncomfortable what the buyer taking on more debt with someone else at the same time. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950