How is getting a mortgage loan for your own home different from getting a mortgage loan for a single family rental home? I do not have a mortgage in my name; our home is in my husbands name. Thanks :)
@Lesley Nuttall There are several differences that you should know about. First off the down payment requirements are largely different. On a primary you can get a down payment as low as 3-3.5%. Most investor loans require around 20% down. Also an investor loan is usually a little bit higher interest rate, since there is a larger chance of default. If things got tough you were give up your rental property before your own home...etc. Hopefully that helps.
If you want to take a mortgage loan with your spouse then there are some different rules. The credit history of both husband and wife will be considered in this. You need a good score to qualify for a mortgage. If you want this alone then you must apply to qualify for a mortgage. Just the down payment requirements get changed. A mortgage advisor can help you in this. In Canada, the financial experts at Canadalend.com can give you suitable solution and advice
Loans are divided into different types. For a loan on something like your own home, it would be classified as a loan on "primary residence." An example of a primary residence loan is the FHA. Generally, an advantage of the primary residence loans is that they allow you to put less cash down. For instance, the FHA can have a 3.5% down payment requirement. With less down payment required, not only is it easier for you to get the property in the first place, but you are more "leveraged" in the property. (you possess the property while having to put down less to possess it) Being more leveraged in the property means your rate of return on investment, or ROI, will be greater. For a loan on a rental property, you are more likely to have to take a conventional loan. Conventional loans traditionally have a down payment requirement of around 20%.
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