New to Real Estate 路 Rochester, MN 路 Member since 2021 路 33 posts 路 6 votes
I am looking to finally get into the real estate rental game and want to find a decent home with minimal work needed to make it look more modern so i can start using the house hacking strategy. 馃彙 馃攽馃捀
so my question is:
When applying for a loan do you go straight through the bank you you been banking with or can i go to other banks and apply? Or what other ways can igo about this? Thanks in advance 馃槉
Real Estate Agent 路 Portland, CT 路 Member since 2019 路 761 posts 路 849 votes
5y
Hey Daniel,
Great to hear you are ready to house hack. I have done two house hacks so far, one with an FHA loan. You could go to your normal bank to apply but I would recommend you find a smaller lender who is able to work with your personally. If there is an investor FB group in your area, I would post that you are a first time homebuyer looking for a lender to pre-approve you for an FHA loan and ask if anyone has recommendations. A good lender should be able to tell you what to expect for an FHA loan and its requirements.
One tip I have is to go to local credit unions or local small banks in your area and ask if they have any special low down payment programs for first time homeowners. Many will have non-fha programs that offer 5-10% down payment options. The benefit of going this route is the loan will be much less expensive than the FHA loan in the future and many allow you to get rid of the PMI after you reach 20% LTV on your property.
Good luck on your search and let me know if you have any questions.
Real Estate Agent 路 Portland, CT 路 Member since 2019 路 761 posts 路 849 votes
5y
Hey Daniel,
Great to hear you are ready to house hack. I have done two house hacks so far, one with an FHA loan. You could go to your normal bank to apply but I would recommend you find a smaller lender who is able to work with your personally. If there is an investor FB group in your area, I would post that you are a first time homebuyer looking for a lender to pre-approve you for an FHA loan and ask if anyone has recommendations. A good lender should be able to tell you what to expect for an FHA loan and its requirements.
One tip I have is to go to local credit unions or local small banks in your area and ask if they have any special low down payment programs for first time homeowners. Many will have non-fha programs that offer 5-10% down payment options. The benefit of going this route is the loan will be much less expensive than the FHA loan in the future and many allow you to get rid of the PMI after you reach 20% LTV on your property.
Good luck on your search and let me know if you have any questions.
Columbus, OH 路 Member since 2021 路 46 posts 路 67 votes
5y
@Daniel Kevin Lara Congrats on getting started! It is certainly worth reaching out to your own bank to see what options they have for you but you should always shop around for other products. Different banks/credit unions offer different types of loan packages and your bank may not have the best option for a house hack.
I would recommend finding a Realtor in your area and letting them know what you want to do. Buying agents are paid by the seller 99% of the time so you get advice for free! Experienced Realtors should have plenty of lenders they have used in the past and can recommend those that can help your situation best. That'll help limit how much "shopping" you have to do.
Realtor 路 Phoenix, AZ 路 Member since 2017 路 117 posts 路 78 votes
5y
@Daniel Kevin Lara I would second what Drew said. As a Realtor, I connect my clients with a list of my preferred lenders that have been vetted and that I know will perform and get my clients the best terms! If you don't already have a Realtor I would suggest finding one in your area with a track record for helping clients find house hacks/investments and ask them to connect you with a few of their preferred lenders! Hope this helps, feel free to reach out!