So close to obtaining a perfect property
Hi so I’m looking to purchase my first long term property. a townhouse in Wesley chapel fl.
Property 300k
Down payment 20%= 60k
Liquid cash 10%= 30k
801 credit score
Low debt to income ratio and and combined salary of 200k w wife
can a bank make an exception on this 20% requirement if I’m qualified in credit score, debt to income, and capable of paying for property if ever vacant?
There are some lenders that will go to 85% LTV for income properties, but I would expect worse terms. If you buy it as a vacation home on a conventional loan you can get a 10% down loan, but you will have to be able to support this with your DTI. You might have better results buying a 5% down primary in Phoenix and then using your current residence as an airbnb or long term rental. Your PMI will be very low too thanks to your 801 credit score.
I definitely don’t want to leave my home and use it as a rental. A vacation home also requires that I live in the property at some point throughout the year
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#2 Private Lending & Conventional Mortgage Advice Contributor
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If your debt to income can support it, you can put as little as 15% down on a non-owner occupied property. The pricing will be better if you put down more, but we do the 15% down NOO often for folks.
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Even with the current market, if you have a low DTI and a very high FICO I feel like you would be able to find a conventional loan that will give you 85% LTV.
The second home route would be the only way to stay ay 10% down. As you mentioned, you would need to occupy this property at least 14 days out of the year. Wesley chapel is not too far from the water so perhaps you can make it a little vacation!
Either way, you need to be working with an investor friendly agent if you are purchasing out of state. I would recommend you chat with @Josh Green. He has helped several out of state investors purchase properties in the around Tampa area.
Quote from @Louis Louisius:
I definitely don’t want to leave my home and use it as a rental. A vacation home also requires that I live in the property at some point throughout the year
Hey Louis, what's the goal with the property? I'd be happy to look at the numbers you're estimating and see if we can't find something better? What's the HOA's stand on using it as a rental? I deal with a lot of out-of-state investors as @Nick Velez just mentioned and I can't say I'm not skeptical at buying a townhouse in Wesley Chapel as an investor but I am open to being corrected!
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Quote from @Josh Green:
Quote from @Louis Louisius:
I definitely don’t want to leave my home and use it as a rental. A vacation home also requires that I live in the property at some point throughout the year
sorry for the delayed response. The goal is to buy and hold and go from there to start generating cash flow. i looked into trying to use a heloc to obtain but the numbers don't support interest only payments or a pay down with that route as rents are a max $2,400 on townhomes around the 35545 area. not sure about the HOA rules either but i'm assuming it would be ok to rent out your property. also I'm in wesley chapel
Hey Louis, what's the goal with the property? I'd be happy to look at the numbers you're estimating and see if we can't find something better? What's the HOA's stand on using it as a rental? I deal with a lot of out-of-state investors as @Nick Velez just mentioned and I can't say I'm not skeptical at buying a townhouse in Wesley Chapel as an investor but I am open to being corrected!
Quote from @Nick Velez:
The second home route would be the only way to stay ay 10% down. As you mentioned, you would need to occupy this property at least 14 days out of the year. Wesley chapel is not too far from the water so perhaps you can make it a little vacation!
Either way, you need to be working with an investor friendly agent if you are purchasing out of state. I would recommend you chat with @Josh Green. He has helped several out of state investors purchase properties in the around Tampa area.
the vacation home route would require i have it vacant and not cash flowing at least one month out of the year. 11 month rentals may not bode well when trying to attract long term renters
You can't have the intention of renting it out long term with a second home so it sounds like that won't work for you. You can also do 15% down on single unit investment properties so that would be your next best option!
Quote from @Nick Velez:
You can't have the intention of renting it out long term with a second home so it sounds like that won't work for you. You can also do 15% down on single unit investment properties so that would be your next best option!
whats that loan option called?
It is just a 15% down conventional investment loan. Not all banks will offer it but it is a standard loan product that we often use. Feel free to message me any specific questions!
Quote from @Louis Louisius:
Hi so I’m looking to purchase my first long term property. a townhouse in Wesley chapel fl.
Property 300kDown payment 20%= 60k
Liquid cash 10%= 30k
801 credit score
Low debt to income ratio and and combined salary of 200k w wife
can a bank make an exception on this 20% requirement if I’m qualified in credit score, debt to income, and capable of paying for property if ever vacant?
Hi Louis, I'm based out of Wesley Chapel, Florida and if you are looking to invest in this area, there are may opportunities for new construction townhomes that allow investors - 20% down. If you need any help with the research let me know, I'm happy to assist.