Im looking at trying to get pre approved for a loan on either my first home or either my first investment property. I would prefer to purchase an investment property in the form of a multifamily home. Im not sure as to how lenders view lending money if I do not plan to live at the property so if I cannot get financing for this, then I plan on just purchasing my first home since Im currently renting. I feel this may be easier to get financed, is this the case that Im looking at? My credit score is 688, and have about $5k for a down payment if I need to use it all. I belong to a credit union that is known to be extremely difficult to get a mortgage through, and do not want to waste my credit score points on a credit check through them. I have been think about going through Quicken Loans for pre-approval but dont know what are the reviews of going through them. Any input on them? Do you have to be a member of a bank in order to request a mortgage through them? Would I be relegated to buying first home instead of an investment property since I do not plan on living there? Where should I go for financing?
If you only have $5k then you can only afford FHA financing for your primary residence. If your buying rental home where you wont live in it you need 20% down + closing cost.
Do not try to buy FHA and have no plan to live in it, you could get in trouble for doing this if caught.
@Pedro Oliva I would purchase a multifamily (e.g., a duplex) with an FHA loan and live in one side while renting out the other. If bought right, you can definitely "hack your house" and live for free, or better yet, still accomplish cash flow. Check out the 50% rules and the 2% rules to get a start of how to calculate cash flow. Good luck!
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