Purchasing a Home for Investment

Hi Jim. It is great that you are taking the time to research this information before you 'jump in'. Many times I see folks make an offer to buy property without researching first, only to be hugely disappointed in the end. There are several things you need to be aware of.Having a family member live in the home is not an advantage other than you know your tenant pretty well. :) Most lending institutions are going to require 20% doenpayment or more, depending upon the situation. It is hard getting a rental property loan if the property is in disrepair or vacant, as well. I would strongly suggest talking to a mortgage professional, such as myself before making a move. I can be reached TOLL FREE at 866-901-3576. I look forward to talking to you soon.

You need to be very careful about being able to qualify with your debt to income ratio. Lenders will only give you credit for 75% of your gross rental income.Also, lenders typically want you to have two years of rental experience.It is much tougher to qualify for a "non-owner" occupied home, so make sure you discuss in detail with your mortgage broker or banker of choice.