Singapore, Singapore · Member since 2013 · 40 posts · 2 votes
We are currently looking at a $100k condominium unit as a first rental property. We, meaning, my mom and I.
Everything else aside, the agent told us that banks usually loan the amount if the monthly payments are at least 1/3 of my salary (my mom is no longer allowed to loan due to her age).
What we're planning to do is to have a lower equity (say, about 15%) and loan the bigger amount (85%). We'll let the tenant shoulder the balance. However, since the loan is bigger, my salary is not enough to justify the amount we are loaning.
What are the other ways we can convince the bank to give us a loan? Or other ways to finance it?
(As a side note, we are not investing in the US and the market is a bit different so we are considering condos as rental property even if, in general, many do not recommend it.)
Property Manager · Pittsburgh, PA · Member since 2012 · 267 posts · 136 votes
12y
Why condos? What is the monthly fee? That normally kills cash flow. Just talk to all the banks/credit unions you know of. Some have looser lending practices then others.
SFR Investor · Dallas, TX · Member since 2011 · 604 posts · 243 votes
12y
If the property is in another country, you need to find out what the banks do in that country. An idea that might help in the US might be a bad move in another country.
Real Estate Investor · Cleveland, OH · Member since 2013 · 301 posts · 112 votes
12y
Local banks may look more at the property than you. That's not to say, however, that your DTI or ability to come up with the down payment isn't important. Visit a few lenders, have a pitch package, and try to show them that they need you ... and not the otherway around.