Banks for Conventional Loans

[Aaron Krawitz]

I'm a new investor and working on making my first purchase. I was approached by an agent who claimed I most likely wouldn't qualify for a conventional loan based on the fact I wouldn't be living in the residence.

I haven't approached lenders yet, but what has your experience been in the Houston area for applying for conventional loans while not living at the residence? 

Both my partner and I have high credit scores, our combined income is over $230k, and our DTI is reasonable. I understand we wouldn't qualify for lower interest loans such as FHA, but I'm talking run of the mill prime interest 30 year loans.

[Andrew Postell]

@Aaron Krawitz not only can you do what you described but you can do it with 15% down.  If a lender is requiring 25% down that means that they have more rules on top of the Fannie/Freddie rules.  Make sure you are working with a smaller type of bank to limit those rules.  Here's what I would recommend asking the lenders you are interviewing:

Questions for Lenders

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
3. What is my minimum down payment required? (not so important but if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
4. Can I change title to my LLC?
5. Do you sell your mortgages?
6. What is your loan minimum?
7. Can you explain to me what your reserve requirements are?

Feel free to tag me with any other questions.  Thanks!