All Forum Posts by: Michael Quealy

@Peyton Finical It may not be the best way to go since it will then show up as a debt, thus increasing your DTI. The bank will want to source where you got the 20% and factor that in when underwriting. The worst your bank can do is tell you "no" but they will give you a reason which will help you make a decision on whether or not to go with a private lender or give it some time before reapplying.

Hi @Peyton Finical - 10% off is fantastic. Before going to a private lender, have you tried working with the bank that you have your personal accounts with? Having a relationship with your lender can go a long way. Put together a PFS and If you have the liquidity to put 20% down plus at least 6 months cash reserves I’d go ahead and apply. Employment length/history is important but not a deal breaker depending on the situation. 

@Brandon Pace Thanks for posting. It sounds like you're building yourself a nice RE portfolio. To help answer your questions, the key elements that most banks and CU's will want to see depend on their underwriting priorities, e.g. credit/collateral/cash, which they will use to ascertain your ability to cover the debt. With traditional lenders, it usually comes down to how much liquidity you have. Since mortgage insurance doesn't cover investment properties, you'll have to put down at least 20%. As you probably already know, you'll also have to have several months cash reserves for each property. Alternative lenders and investors have different guidelines and may be more "investor friendly" when considering financing a deal. I hope this helps!

@Eric M Estes Well done. Thanks for sharing. 

@Account Closed Have you tried going to the bank or CU that you do business with? If you haven't already, I would start there as they would likely offer the most favorable terms. May I ask which industry your startup is in?