1st RE Investment Interest Rate
Hello to all, this our 1st investment property & im wondering with a property that shows as a Duplex at the county but is an actual triplex (2/1, and 2 studios) with a credit score of 790 what type of loan is best & what should my interest rate be? I’ve been quoted 8% non-QM with 15% down, or 6.125% conventional with 25% down. Only the 2/1 and ONE studio have permits pulled. Any better terms/loans out there so I don’t have to come out with so much down with a decent interest rate? Is a permit for a studio actually required if the structure of the home hasn’t changed?
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#1 Creative Real Estate Financing Contributor
- Lender
- Austin, TX
Those terms seem pretty in line with the market right now, you do have to be careful on the permitting though (did you disclose this to the lenders giving you the quotes)? Reputable lenders are not going to be able to use the income from an illegal unit in terms of appraisal valuation or cash flow qualification
Yes the lender is aware. Thank you for your feedback. There’s so much to learn it’s overwhelming. If I wait to read everything before investing I’ll never get to do it so learning as I go with the help of bp is all I can do.
