Hello everybody. I have a questions about conventional loans for mortgages. I have a preapproval for $200K. As an investment strategy I want to buy two houses, one to live in and one to rent out. If the mortgage for both properties came to under $200K would a bank approve such a thing? How are two seperate mortgages treated compared to one mortgage for the same amount?
If someone could let me know if such a plan is realistic I would be grateful.
So if I were able to put 20% down on each property that would increase the chance of me being approved for both loans?
Thank you for the advice.
Actually you should be able to qualify for that amount split into two loans. Closing costs will be more for two property's versus one. If you are going from 4 to 5 properties guidelines get more strict. I do this generally when I have clients wanting to purchase several low priced homes that want to see what total purchase price they can go up to. It gives you a general good idea, when it comes to DTI's.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing