Just wanted to ask and run by a few questions, regarding some general Investor and Rental Properties .....
1. Once you start receiving Rental income , How long do you have to wait, before a Lender will let you use that Rental Income as your own Income .
Say you clear $500 a month from a Rental property , and have had a renter renting that property from you for 4 months at the time that you go in to the Lender to try and get another Loan for another Rental Property...... will they likely use that $500 that you're making from the Rental, " Go Towards " your actual income ?
2. I know that HomePath has an Investor based loan at 10% down ? ( I guess it is still 10% down , if purchasing as an Investor ) ?
Aside from HomePath's Investor Loan , are there any other Loans out there that have " Lower " than 20% down , if you are wishing to purchase a property as an Investor ?
3. Is there any " Investor " Loan out there , that will allow you to do some of the basic rehab work yourself .... I'E. let you install the flooring and paint the inside and outside of the house ?
Thanks for all of the help,
always appreciate it - Michael
Homepath loans no longer exist. They were phased out in 2014.
Thank you for the update regarding the HomePath loans and buying them as an Investor
Since this is no longer available as an option to purchase as an Investor at 10% down through HomePath , Is there any other option(s) out there that allows for purchasing properties as an Investor ( and having to put down 10% or less ) ?
Thanks so much, I appreciate it
10% down for an investor is virtually impossible to find in "conventional" lending scenarios. You could try talking to a local bank who will lend the money in a portfolio loan.
@ Michael Dunn It usually takes two years of continuous rental income for that money to count towards your own personal income from lender's perspective.
I do not know of any low money down conventional loans for investors. Is there any way you can live in the property? Then you can use an FHA loan /FHA 203K loan for the purchase of the property and any repairs needed.
I have been approved for a loan on a rental property through Quicken loans, and they counted the income from a rental I have only had for a couple of months.
They required at least a year lease on the rental and bank statements as proof that I was getting the rent payments.
Of course, I still need to put 20 percent down.
As @Felipe Ocampo said, it is typically two years, but this typically means two tax returns with rental income, so if you buy and have rental income late in year 1, them the overall time is shorter. Also, some lenders will consider rental income after one year (so I've heard).
Typically lenders count 75% of the gross rent as income.
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