Comparison

[Eric O'Hair]

My wife and I are really wanting to start buying rental properties.  We have great credit, and have a little over $700 /mo to invest.  I inquired on a loan through Teachers Credit Union since they are our regular bank and lender(HELC).  We initially thought a $35,000 house would be a good place to start.  However the real estate agent we are working with mentioned he could possibly get us a triplex for $70,000.  The mortgage specialist initially said 5% down is what we would need, that'd be easy.  Apparently there was some type of miscommunication and she thought it was for a primary residence.  To qualify for a investment property the guidelines seem very restrictive and I want to ask if these are normal guidelines.  If they aren't( I really hope they aren't), could I get some suggestions and tips on where to go, would a bank instead of a credit union be a better bet? Are loans like this normally this restrictive? 

Down payment requirement 30% (no gift of fund allowed)

Max term is 15 yr fixed – current rate today is 4.125%

Must escrow for both property taxes and insurance

Credit score over 700 + (this is not an issue)

Property must be located in Indiana

Debt Ratio needs to be at 40% or under

3 months reserves for principal, interest, taxes and insurance .

Thanks for your help Bigger Pockets family.

Eric