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Getting a Mortgage on a 2nd Home (Hints, Advice, etc?)
Posted on 6/17/21 at 3:40 pm
Posted on 6/17/21 at 3:40 pm
Free & clear on the primary residence.
My credit score is ~800, I can qualify solely as can Mrs Füt (no pics) but I'd like to have the mortgage jointly for shitz & giggles.
~15-20% Down, Property value will be less than a Jumbo loan value.
Same state (MS) as my residency & other property.
Not using the new property to generate income.
I'm wondering about best practice on prequalification without assaulting my personal Credit Report?
Any suggestions would be appreciated. TIA
My credit score is ~800, I can qualify solely as can Mrs Füt (no pics) but I'd like to have the mortgage jointly for shitz & giggles.
~15-20% Down, Property value will be less than a Jumbo loan value.
Same state (MS) as my residency & other property.
Not using the new property to generate income.
I'm wondering about best practice on prequalification without assaulting my personal Credit Report?
Any suggestions would be appreciated. TIA
12
Posted on 6/17/21 at 3:53 pm to soccerfüt
not sure there is anything special you’d need to do, assuming you have income you should be able to get any loan that is offered.
Posted on 6/17/21 at 4:26 pm to soccerfüt
any acreage or just a house?
Posted on 6/17/21 at 4:38 pm to soccerfüt
It's just a mortgage inquiry, you lose about 4 pts and you'll get them back after 30 days. You can also shop around lenders within that 30 days and not get dinged each credit pull for mortgage inquiry. If you're around 800, 4 pts won't make a difference at all.
If the new property is within 100 miles of your current property, it'll have to be considered an investment property (higher rate than 2nd home), unless it's at a resort or waterfront property, then it can be considered 2nd home.
Yes 20%.
I'm sure you have the funds for DP and closing already, but just in case not, family gift funds are not allowed on 2nd home and investment property loans.
If the new property is within 100 miles of your current property, it'll have to be considered an investment property (higher rate than 2nd home), unless it's at a resort or waterfront property, then it can be considered 2nd home.
Yes 20%.
I'm sure you have the funds for DP and closing already, but just in case not, family gift funds are not allowed on 2nd home and investment property loans.
This post was edited on 6/17/21 at 4:40 pm
Posted on 6/17/21 at 4:41 pm to soccerfüt
Tell them that you plan to move into this home
Posted on 6/17/21 at 4:52 pm to Tigerpaw123
quote:Just a house.
any acreage or just a house?
Posted on 6/17/21 at 4:54 pm to ColoradoAg03
quote:Roger on the 20% and the money was not from a family gift fund.
Yes 20%.
I'm sure you have the funds for DP and closing already, but just in case not, family gift funds are not allowed on 2nd home and investment property loans.
Posted on 6/17/21 at 4:54 pm to AUHighPlainsDrifter
quote:And why?
Tell them that you plan to move into this home
Posted on 6/17/21 at 5:07 pm to soccerfüt
quote:Are you in a position to lend it to yourself using an intermediary?
Getting a Mortgage on a 2nd Home (Hints, Advice, etc?)
quote:
I'm wondering about best practice on prequalification without assaulting my personal Credit Report?
How would you assault your personal Credit Report?
This post was edited on 6/17/21 at 5:08 pm
Posted on 6/17/21 at 7:09 pm to soccerfüt
Sounds like a fairly inexpensive home? Why not take out a mortgage on your residence to cover it? That way you lock in the lowest rate.
Posted on 6/17/21 at 7:18 pm to soccerfüt
did this on a condo once...
primary house was paid off so just took a loan on the primary house...forget what it was called.... they basically just check to make sure what primary house value is and give you x percent of that to spend on your items ...
they try to push you up to the max and say hey while getting the condo go get a rv of put a pool in your house....
was painless...used the same bank thst had the original loan on my primary house thst i psid off...good rate...treated like regular loan on taxes and no prepayment penalties....
primary house was paid off so just took a loan on the primary house...forget what it was called.... they basically just check to make sure what primary house value is and give you x percent of that to spend on your items ...
they try to push you up to the max and say hey while getting the condo go get a rv of put a pool in your house....
was painless...used the same bank thst had the original loan on my primary house thst i psid off...good rate...treated like regular loan on taxes and no prepayment penalties....
Posted on 6/17/21 at 7:32 pm to soccerfüt
As long as its 50miles away you will get primary like pricing
2%s
If investment low 3s
Just pick a lender and close the loan in under 15 days
2%s
If investment low 3s
Just pick a lender and close the loan in under 15 days
Posted on 6/17/21 at 7:45 pm to soccerfüt
quote:
And why?
Be smart about this.
On multiple occasions I have planned on moving into a house and then oops life happened and then i needed to rent that house.
just a stroke of luck that i had a 3% loan at 30 years.
Anyway, carry on.
Posted on 6/17/21 at 8:44 pm to NC_Tigah
quote:I can lend the money to myself but don’t want to diminish my current return from my investment funds. I’ve got a local firm handling my investments that will work with me any way possible & reasonable. Maybe there’s an aspect of this type of transaction that I don’t understand, if there is, I’m all ears.
Are you in a position to lend it to yourself using an intermediary?
The potential new property would be about half or two-thirds the value of my primary residence. I’ll investigate going back to my Credit Union and seeing what they can do as to using the original property as collateral.
Thanks for all of the information so far.
Posted on 6/18/21 at 8:51 am to SDVTiger
Where are you seeing the low 3’s for an investment property? I’d love to jump all over this. My current investment property is sitting at 4.25.
Posted on 6/18/21 at 9:32 am to soccerfüt
quote:Really depends on what you want to do and how the numbers play out for you after taxes.
I can lend the money to myself but don’t want to diminish my current return from my investment funds. I’ve got a local firm handling my investments that will work with me any way possible & reasonable.
With the home as a portfolio asset, interest payments as cap losses lower investment tax exposure. Depending on your bracket, and locale, that can be significant.
Also you can minimize downpayment and/or payment toward principal. No downpayment/smaller monthly notes/no PMI ... run the numbers vs cost of a traditional mortgage and decide.
Posted on 6/18/21 at 10:03 am to Lickitty Split
If you're in LA, XPlore Federal Credit Union offered me a 2.75% refi on my investment property.
Posted on 6/18/21 at 10:10 am to soccerfüt
quote:
And why?
Interest rates are usually lower for a primary residence.
Posted on 6/18/21 at 11:25 am to Lickitty Split
quote:
Where are you seeing the low 3’s for an investment property? I’d love to jump all over this. My current investment property is sitting at 4.25.
Conv rates right now. As long as you are full doc
Some are in the 2% if you are just doing rate and term
Posted on 6/18/21 at 3:58 pm to soccerfüt
Get a mortgage on your primary residence. Will likely get a better package. Use the money for the second home.
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