Do I miss something with Financing
I am happy, the seller accepted my offer verbally, so I called the Loan company, so he said I can have loan, so let me explain:
Option 1:
I have one property I bought with Cash for $70K, added $25K rehab, I am putting it to rent. House value around $115K
He mention they can lend me on that house 75% of $95K, mean I can get around $71K
Option 2:
I am buying a house for $80k, so if I put the mortgage on the house I am buying then I will get $68K and I have to put $12k - I guess this is the normal mortgage process.
Do I miss something?, I thought I would be able to get $95k for my BRRR.
Did I explain wrongly to the mortgage guy? he keep thinkin that for my house I own free and clear I have to get only 75%
What do you think guys?