Using loan for 20% down payment- Will I be approved for mortgage?
Here's my situation:
I want to buy an investment property at 20% down (which would be $10k-11k).
I can get a loan for the down payment (talked with a credit union already). If I choose 5 years for repayment of this loan, it will be about $210 a month. 3 years would be $320 a month.
Are there lenders that would approve me for a mortgage if I used this loan to pay the down payment? i.e. I would have a $210 or $320 monthly payment in addition to the mortgage payment of around $500-$550?
The property would bring in about $950-$1000 a month in rent and it's in great shape. So it will cash flow a little bit even with the 2 payments.
Would it come down to DTI ratio?
This is a great investment opportunity I don't want to pass up, so I want to explore all my options for financing.
Secondary question- would it affect my mortgage approval chances if the loan for the down payment was a home equity loan vs. an unsecured loan vs. a private money loan?