My wife and I are building our personal property which should be closing by the end of February beginning of March. Currently we are running a direct mail campaign to wholesale what we put under contract. However we would really like to get a deal under our belts for buy and hold. We are concern with doing anything that will affect getting our own mortgage since we had to put down 5% of total purchase price for construction. Are there any ways to purchase properties without it affecting our own mortgage? Thanks,
@Jose Garcia If you have sufficient income to carry both the loans, then its not an issue. Or if the investment property is rented before you settle on the primary residence, then some lenders will let you use 75% of your rental income to offset the PITI. This way there would be no effect to your DTI.
Another thing to keep in mind is the down payment. For investment you have to put 20%/20% (depends on type of property). Primary can be lower. So need to be sure you have the money for the two down payments.
I would advise against doing anything unless you've cleared it with your lender. The last thing you want is to create more problems or an issue that would prevent you from closing on your other home. If you were buying those other properties with cash that was not set aside for your primary residence purchase, then that probably wouldn't interfere (but don't go and spend your down payment or reserves or construction contingency budget). Really, the best person to ask at this point is your current loan officer.
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