Financing An Out of State Purchase

Financing An Out of State Purchase

Gila Bend, AZ · Member since 2017 · 38 posts · 14 votes

I'm getting a few answers about financing an out of state purchase.

I want to buy out of state but a mortgage broker said I should be in the state.

I have 20% down and the numbers will work great.

We just sold our main home and used the proceeds to pay off every debt minus college loans. 

Credit is fair at 650 to 670 (it keeps changing because we just paid everything off within the last 45 days.)

Frontend debt ratio: 6.29%

Backend debt ratio: 13.43%

This will be a rental unit (not sure if that matters).

Are there any rules I haven't heard about that would stop anyone from considering a mortgage? 

I appreciate the help!

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Harjeet BhattiPro Member
Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
9y

I don't see any reason why can't you buy investment in other states. Try to find out bank who  are  lend in all states.

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  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    9y

    I don't see any reason why can't you buy investment in other states. Try to find out bank who  are  lend in all states.

  • Gila Bend, AZ · Member since 2017 · 38 posts · 14 votes
    9y

    Thank you @Harjeet Bhatti

  • David BarnettPro Member
    Rental Property Investor · Cambridge, MA · Member since 2016 · 634 posts · 415 votes
    9y

    @Frank Schwarz I invest in a state other than my own.  I've financed all of my deals (three so far, all commercial loans).  As Harjeet mentioned, you can either find a national lender, or you can find a local bank that lends in the area that you are looking to invest.  I probably would move away from the mortgage broker and call the banks yourself.

    Best of luck.

  • Financial Advisor · Des Moines, IA · Member since 2017 · 173 posts · 58 votes
    9y

    Shouldn't be a problem finding a lender to lend to an out of state owner.  You may need more down money though.  May need 25-30%.

  • Gila Bend, AZ · Member since 2017 · 38 posts · 14 votes
    9y

    Awesome info guys. I greatly appreciate it.

  • Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    Try some mid-sized or even large banks. OOS financing with small properties can be difficult, so just make sure you have it all lined up before buying. 

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