All Forum Posts by: Cody Cavenaugh

Hey I'm located in Waco Texas and Dallas Texas, I have contacted only the credit union of Texas and bank of America that's it. My property is in Waco so I'm there for 10 months out of the year then I move to Dallas for the summer. What would you recommend?

0 Votes

Waco, Texas

Quote from @David M.:

@Cody Cavenaugh

Well, first of all only the "investment" conventional loan start at 20% down is the only conforming loan without a owner occupied requirement. So, if you aren't going to live there for a year, then the other products such as FHA or a conventional <20% are off the table.

Just to clarify, the FHA loan normally allow for as low as 3.5% down. You can still use a FHA product and put more down... Conventional loans normally go as low as 5% down. If you can qualify, they will be generally cheaper than a FHA loan.

Otherwise, what's being used a lot apparently is a DSCR loan. It doesn't care about your income, just what will the property pull in on rent. Its a non-conforming loan so there will be slight variations in terms and conditions between lenders. Also, this means all the "regular" consumer protections built into conforming loans may not, or will not for that matter, be there.

Honestly, the best thing to do is talk to your lender, or find a better one that will figure out the best option for you. Good luck.

Thanks for the advice, I will definitely research the DSCR loan in depth. It seems like I would have to live at the house if I wanted to purchase another one unless the DSCR lets me do otherwise. If I live there would you recommend the FHA at 3.5% or conventional at 5%? I feel as if the FHA might be more easy to get approved for. For finding lenders would you just recommend a simple google search.

0 Votes

Waco, Texas

Quote from @Theresa Harris:

You might be able to buy it for 5% if you move into it and use the first one as a rental. I'd be careful who you rent it out to. Often renting to friends is a bad idea-what if they stop paying the rent, are you willing to evict them? Also do you want it to be a party house? You could look at renting by the room.

You also have to know if the banks will lend you more money. Refinancing, they might not let you pull out all of the money. Often they will do 75% or 80% of the value of the home.

I currently rent to my fraternity brothers and have not had a problem collecting rent. I rent each room out by room, and it has done extremely well. We go to a private college, so I would say money is not a concern for most of my friends. I have a 2.49% interest rate on my property, so I don't want to cash out refi with current rates. Do you think the only way I will be able to purchase it for 5% down is if I move into it? Is there no way I could apply and buy it as a second home and rent it out that way for 5% down?

0 Votes

Waco, Texas

Hi y'all, I purchased my first property last year and am up roughly 100K on it. I'm looking to pull equity from that and to buy a second home to rent out as an investment property. I'm a college student and want to buy another property to rent out to my fraternity brothers next year. What loan options would be best for me? So far the only option I can think of is 1.FHA 3.5%, I ideally want to purchase my second home at 5% down. Is it possible todo a second home conventional loan for 5%? What would be my best bet? Thanks Cody

0 Votes

Waco, Texas

Hi, I have my first property I bought last year which I am attempting to get a HELOC loan on. Since I don't have any proof of income I had my dad cosign the property, but is not on title as I own it purely in my name. This property is currently my primary residence. I live with roommates and that's how I can afford the mortgage payment each month. The house has appreciated roughly 100k since I have bought it, do y'all know any good lenders or banks that will be able todo a HELOC loan? I do not have any income since I am a college student, but my dad will cosign the HELOC loan in order to get it approved. I'm really trying to find a credit union or bank that will lend to me, any thoughts??

0 Votes

Waco, Texas

All Forum Posts by: Cody Cavenaugh

Cody Cavenaugh has started 10 posts and replied 15 times.

Post: need a HELOC in Texas for purchase of second property

Post: Ways to purchase second home for 5?

Post: Ways to purchase second home for 5?

Post: Ways to purchase second home for 5?

Post: need a HELOC in Texas for purchase of second property