First rental, Recommended Lending Options?

Question

Hi Bigger pockets community!I am 19 years old and coming to the point where I have saved enough capital to start the process of shopping around to find conventional financing for my first long term rental property in Syracuse NY!Any recommendations before I start making calls to multiple lenders that fit the criteria of these questions below and decent rates would be greatly apricated!!! -When do you start using ARV to help one qualify?-When do you start using rental income to help on qualify?-Can I have multiple loans with this lender? -Can I change my title to an LLC eventually?-does this lender sell their mortgages?Thank you for your time and consideration everyone!

Brittany Minocchi · Answer

Hey @Elijah Berg! I can't help in NY, but I wanted to give some  general info:

1. Are you planning to buy properties that are in need of rehab? That's where ARV comes into play.

2. Whether or not you can use rental income to qualify depends on how much experience you have and what type of loan you are getting.

3. You can have up to 10 conventionally financed properties as long as you otherwise qualify (you may run into issues with DTI before you hit 10)

4. You can do this by refinancing or changing the deed, but be aware that changing the deed could cause the loan to be called due. No way to know for sure if it'll happen, just be aware of the risk.

5. Some do, but most lenders do not service their mortgages.

AJ Exner · Answer

Hey Elijah, so I help with Hard Money so my answers will be focused on that.-When do you start using ARV to help one qualify?

Most lenders that are doing rehab-bridge loans are going to largely base the deal off of that. Of course, it is always wise in analyzing a deal to consider that value in determining if its something that you would want to go after anyways

-When do you start using rental income to help on qualify?

After you have done the rehab and are looking to refinance is when the rental income is considered. It would not be needed on the initial

-Can I have multiple loans with this lender?

Yes, almost every lender would do this as long as you have the funds to do it

-Can I change my title to an LLC eventually?

Highly recommend this, if even based largely on the liability and safety that comes from doing it this way. It stays off of your personal credit and lets you keep it off of your personal DTI

-does this lender sell their mortgages?

Sometimes, depends on the lenderI hope that helps!