Updated almost 8 years ago on . Most recent reply
Looking to buy my 3rd home(primary)
Hello bp, I wanted to start looking into my 3rd home and want to be sure I can qualify. My first home is a duplex which I live in one unit and rent the other . My second is a investment duplex all rented out. So I know want to buy a single family for me and my wife. What do the banks look for when buying a 3rd home . Any help would be appreciated.
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Good afternoon,
I just went through this process myself, so I may be able to help. I just bought my fifth property, a single family home that is my primary residence. Aside from that I own 2-4 unit apartment buildings and two single family homes, one of which was my primary residence up until I moved.
The bank looked at several things to be sure I could afford these homes. They looked at my personal income and credit of course. They also looked at my debt to income ratio. That number was higher due to the fact that I have a W2 job as well as rental income.
Finally they asked me to do a little bit of analysis so that I could use the future rental income from my former primary residence. I had my realtor run an estimate of monthly rental income for the property, and I also used rentometer.
With that property I now own over $1,000,000 in real estate