I have been interested in RE investing (SFH), and hope to get started soon. (Any leads in/near Atlanta, let me know). I am also planning to buy our residence in the very short term. I can arrange funds for the down payment for both purchases. However, I am not sure how to best get the mortgages. I was considering our home in my name and RE/SFH in my spouses' name to get the loans. Any other suggestions?
I'd call several lenders and get them to give you the rates for each scenario (both in both names, one in yours and one in theirs and vis versa). I'd also get the rates for each scenario with differing down payment amounts and point paydowns. If you do that you'll have 20+ options to choose from. They'll also be able to guide you on the risk and benefits of getting mortgages in one of your names vs both as well as what you can do to get a better rate (increase credit score & history, decrease debt, increase income).
Hey @Jack Sheoran! When it comes to obtaining mortgages for your home and real estate investment property, you have several options to consider based on different lender types. One option Like you mentioned, is to put your home in your name and the investment property in your spouse's name, which will allow you to work with separate lenders for each property. This approach can also help diversify your loan portfolio and reduce your overall debt burden. Another option is to finance both properties with the same lender, whether in your name or your spouse's name, it will depend on who has stronger financials. This approach simplifies the loan process by dealing with a single lender and potentially consolidating your debt and credit profile. Lastly there's private lenders or hard money lenders. They have different qualification criteria and can offer more flexibility in terms of financing options. It's important to evaluate each option carefully and consider factors like income, credit requirements, down payment, rental income potential, and your long-term goals.