LENDING PROCESS FOR FINANCING A RENTAL

[Jean Pierre Jabo]

First time interested in buying a rental property. Me and my wife currently rent an apartment in a small town and my question is, what are the financing options for lenders if we plan on buying a house in CO Springs and not live in it for the first 2 years or so?

thanks!!

[Matthew Kwan]

If you are planning to buy a rental property while renting an apartment, lenders will have to count both of it as a liability. Typically investment properties requires 15%-25% down payment depending if it's a single family or multifamily. However, if you put it as a primary residence house, the only liability you will be counted towards is the monthly mortgage payment of the house and removing your rent expenses (since you moved out). The benefits of buying a primary or first time homebuyers is that rates are typically lower than investments because the governments incentives to buy houses. On the other hand, you can repeat the process every year through house hacking and rent out your current primary house by converting it as a rental and acquire another property. I'll be happy to connect if you have any questions or concerns. Wishing  you all the best on your Real Estate Journey!

@Carlos Valencia

@Carlos Valencia @Albert Bui