Loans for rental properties?

[UCGal]

When I was looking for rental properties several months ago (so the data is stale) the rates got dramatically better at 25-30% down and higher.

There were loans for smaller downs – but they were a lot more expensive.

If you just want to get an idea of the difference in rates you can play around on aimloan.com. If you decide to pull the trigger – definitely shop rates.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[HLS]

Fannie/Freddie both offer investment property loans with 20% down/equity IF YOU CAN QUALIFY.
Pricing is better with 25% and slightly better with 40% down/equity. Applies to purchase OR refi.

Today, 5.00% was possible with no points and 25% equity on a 30 year fixed. Loans up to $417,000.

Loan limits/rates are higher on 2 to 4 unit properties.

It gets complicated if you do not have a 2 year history of being a landlord with other properties.
You may have to qualify for the entire payment + taxes, insurance and HOA, without any credit for potential rental income.

On a refi, they look at schedule E of tax returns and add back depreciation to the bottom line to figure the net income/loss.
I don’t think that 75% is used anymore by anyone.
That was several years ago.

You generally need at least 6 months liquid reserves for rental properties. Retirement accounts like PERS that cannot be borrowed against may no longer be used for reserves.

There are way too many restrictions/variables to list. Many people will not qualify without substantial income that will be accepted. Straight salary is easy to verify. Bonus, commission or self employed income can get really complicated.

There is no such thing as an easy loan today.
Even 50% down and loads of cash in the bank and a high credit score doesn’t make it much easier.
There is no one simple mortgage rate that everyone can qualify for.

Rates are close to historic lows but the lowest % of the population in history can qualify for ANY loan today, purchase OR refi, primary or investment.
It is more even difficult to get a loan on condo rentals.

For the lowest rates, banks don’t make up their own rules. F/F make the rules and banks are just mortgage brokers, many do not offer the best rates or programs as they have additional guidelines.

Websites that show rates will not show what you actually qualify for, and if they don’t know your credit score they are probably only quoting for scores above 740.

[blahblahblah]

Thanks for all the details everyone, that is really helpful info. I have seen a couple of new costruction condos, very nice in desirable neighborhoods at 2001-level ppsf. Most of these would be break-even but I think I’ve found one that would be cash-flow-positive.

Unfortunately I bought a house last year and put a bunch of money into the remodel so the cash reserves ain’t what they used to be. It sounds like I need to keep saving.

If we can get to where things used to be before all of the wannabe Don Trumps were in the market, I think there might be some good investments to be had in a few condo buildings (not all of course). Not interested in flipping but holding forever and using for retirement income (and something to keep myself busy) 30 years from now.

[blahblahblah]

Thanks for all the details everyone, that is really helpful info. I have seen a couple of new costruction condos, very nice in desirable neighborhoods at 2001-level ppsf. Most of these would be break-even but I think I’ve found one that would be cash-flow-positive.

Unfortunately I bought a house last year and put a bunch of money into the remodel so the cash reserves ain’t what they used to be. It sounds like I need to keep saving.

If we can get to where things used to be before all of the wannabe Don Trumps were in the market, I think there might be some good investments to be had in a few condo buildings (not all of course). Not interested in flipping but holding forever and using for retirement income (and something to keep myself busy) 30 years from now.

[blahblahblah]

Thanks for all the details everyone, that is really helpful info. I have seen a couple of new costruction condos, very nice in desirable neighborhoods at 2001-level ppsf. Most of these would be break-even but I think I’ve found one that would be cash-flow-positive.

Unfortunately I bought a house last year and put a bunch of money into the remodel so the cash reserves ain’t what they used to be. It sounds like I need to keep saving.

If we can get to where things used to be before all of the wannabe Don Trumps were in the market, I think there might be some good investments to be had in a few condo buildings (not all of course). Not interested in flipping but holding forever and using for retirement income (and something to keep myself busy) 30 years from now.

[blahblahblah]

Thanks for all the details everyone, that is really helpful info. I have seen a couple of new costruction condos, very nice in desirable neighborhoods at 2001-level ppsf. Most of these would be break-even but I think I’ve found one that would be cash-flow-positive.

Unfortunately I bought a house last year and put a bunch of money into the remodel so the cash reserves ain’t what they used to be. It sounds like I need to keep saving.

If we can get to where things used to be before all of the wannabe Don Trumps were in the market, I think there might be some good investments to be had in a few condo buildings (not all of course). Not interested in flipping but holding forever and using for retirement income (and something to keep myself busy) 30 years from now.

[blahblahblah]

Thanks for all the details everyone, that is really helpful info. I have seen a couple of new costruction condos, very nice in desirable neighborhoods at 2001-level ppsf. Most of these would be break-even but I think I’ve found one that would be cash-flow-positive.

Unfortunately I bought a house last year and put a bunch of money into the remodel so the cash reserves ain’t what they used to be. It sounds like I need to keep saving.

If we can get to where things used to be before all of the wannabe Don Trumps were in the market, I think there might be some good investments to be had in a few condo buildings (not all of course). Not interested in flipping but holding forever and using for retirement income (and something to keep myself busy) 30 years from now.

[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

[HLS]

Concho..
Your post made me LOL. Anyone who wants to buy a condo without substantial income and reserves to hold “forever” *IS* a “wannabe Don Trump” in my book.

In Vegas lingo, rental condos are suckers bets
and there appear to be no shortage of suckers interested in buying them.

Perhaps we need a good old fashioned depression to wake people up and stop playing Monopoly with OPM.

The mindset of millions of people that playing landlord (on a shoestring) is a road to riches is part of the problem, it is not part of the solution.

It’s definitely not as easy to get rental financing today so that is a tiny step in the right direction. It is more difficult to get financing on new construction condos. Until the association is turned over to homeowners and the developer is no longer in control, it can be complicated as well as projects that are not 100% built out.

I can only imagine what the association dues and condition of many complexes will be 30 years from now and it’s not something that I would want to be involved in.

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