Will I be able to obtain mortgage?

Question

Hi everyone,

I'm planning to buy a single family home under $150,000 as a rental property. I'm a foreign investor (but have green card) and have no income history in the states. I have a credit score of 704. A paid-off property valued at $340,000 located in Seattle. and saving of $100,000 at the bank of america.

1. What kind of loan will I be able to obtain?

2.home equity vs mortgage, which one is better for me?

3.Currently I'm living in California, Should I find a local lender here? or find a lender in the state where I'm going to buy the property that I'm interested?

Robert Williams · Answer

Hi Ken,

You should be able to qualify for the same types of loans that any US citizen can qualify for provided that:

1.  You have a credit history in the US (you mentioned no US income history, but do you have a credit history of at least two years?)

2.  You have a current, documented source of income (no conventional lender is going to give you money if you don't have a documented source of steady income.)

Your large savings will help your case, your other property may help or hurt (lenders count the property taxes and other property expenses as debts you have to pay.)

Paul Tschetter · Answer

Great question Ken.  I think it is really hard to say as there are a lot more questions to answer and circumstances to consider.  I am guessing you are going to get lots of different opinions from other BP members!