How much would a bank loan me for these two mortgages?

How much would a bank loan me for these two mortgages?

Dallas, TX · Member since 2014 · 650 posts · 53 votes

One owes about $75,000 on a house that would appraise for $150,000.

One owes $98,000 on a house that appraises for $132,000.

If I did a portfolio loan or a blanket loan, any perspective on how much money I may be able to be loaned as a down payment on another property?

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  • Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y

    It likely depends on your Debt-To-INCOME ratio. Eg. Does 75% of the rent return on those properties completely cover your PITI? (My guess is no, if one of those properties is your primary).

    Hmmm. I don't know if they would even consider including your primary as part of a portfolio loan.

    I reckon you'll be pushing uphill if there's NO positive, provable, cash flow from them.

    eg. Are the property Taxes there killing your cash flow?

    Also, what OTHER savings do you have as well as your equity? Lenders can be funny about that.

    If a Portfolio Lender agrees to say 70% LTV, that won't get you much more than $20k! Enough?

    [I don't recommend leveraging above 70% LTV, even if a Lender agrees to take that risk].

    I suspect you might get some better answers to your question by: asking some Lenders! Cheers...

  • Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    9y

    Two Property Owed total debt: $173,000.00 

    Total Appraised value: $282,000 

    Equity after debt: $109,000 

    75% LTV $27,250 (Blanket second mortgage )

    I remember from your other post that you have good income and credit. Lenders will move outside the box if you make good money. 

    25% Down payment amount = $85,000

    Blanket second mortgage= $27,250 

    Shortfall = $57,750 

    See if you the Seller will hold a small second mortgage for half of the shortfall amount and bring the reminder cash to the table. The shortfall will be a greater because of appraisers, and closing cost.   

  • Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
    9y
    Have you spoken to any banks about this deal yet?
  • Dallas, TX · Member since 2014 · 650 posts · 53 votes
    9y
    Originally posted by @Michael Henry:

    Have you spoken to any banks about this deal yet?

     Starting to. Price shopping. 

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