Purchasing of my first rental property.
I have finally decided to go on and make my first real estate investment. I have my eyes on this 3 family unit. I do not have the necessary funds for the transaction, do I make an offer to the seller or get the financing option from the bank first? Thank you.
Most Popular Reply
You definately want to get approved before making an offer on the property.
Is this a primary residence or a investment property?
A primary home you could go FHA on a 3 unit with only 3.5% down, but the property will be required to pass the self-sufficiency rule. For conventional you could get as low as 20% down, if you don't have to count rental income towards qualifying. Fannie Mae requires 25% down and you could count rental income towards qualifying.
If the property is an investment property than you would be required to put down 25%.
- Jerry Padilla
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