Mortgage question Help!

2 Replies

I have searched the archives and couldn't come up with anything exactly pertinent. So here is the question....

Scenario: excellent Fico score 880, liquid assets, and want to make a purchase in the 30K range for an investment property but don't want to use cash. We want to save the liquid assets for other investments for down payments etc. Is there a minimum mortgage amount that a bank will require that we have to borrow based on salary, assets etc.?

In other words can we make an 80% loan at the current mortgage rates without having to pay an interest penalty for being under a minimum mortgage loan?

And secondly, will quit claiming from a personal loan to a living trust help protect the assets rather than having to establish an LLC?

Thanks for your help!

Karen K

Scenario: excellent Fico score 880, liquid assets, and want to make a purchase in the 30K range for an investment property but don't want to use cash.
You'll have a tough time finding lenders that want to mess around with a 100% LTV for investment properties under $50K at low rates. Those just aren't profitable loans for banks.

And secondly, will quit claiming from a personal loan to a living trust help protect the assets rather than having to establish an LLC?
You're a smart person to be asking this question, but this is really something to talk about with a lawyer.

The quick answer: trusts are a good part of an asset protection plan.

I had a $50,000 loan I was applying for with a major lender and was told by the loan officer that it was marginal at this level. They did make the loan but wouldn't have if the amount had been $45000 for example.