Question for exp brokers
Posted 17 July 2012 - 09:13 PM
Posted 19 July 2012 - 05:15 PM
This is a real tough question to answer without all of the exact numbers and details?
Last Sept I moved into my moms house when she decided to go back to college. I have been paying the mortgage every month from my bank account. I feel that the best option at this point is for me to buy a home and rent this house out. My issue is that I would be a first time buyer. I make roughly $70/k year and I am 23 years old. My plan is to go with Navy for the 100% mortgage. Once I get her house rented I want to refi it. The apr is 7% and bringing it down to 4-5% would allow me to build a nice cushion between actual mortgage payment and rent. I can't refi it in her name because she has no income for one and i'm not sure how her credit has improved. Long stroy short she had an ARM that she refied after getting burned. Would I have trouble refi-ing it in my name just a month or two after closing on my purchase? I plan on buying a house around $150-160 with a mortgage payment $1050 (incl escrow) and renting this house that currently has a payment of $875 for $1075. My goal would be to get the mortgage down in the $650-750 range so that I can build up some money for mishaps. Is this possible? How should I plan?
If you have the equity to get the refi done without having to worry about Mortgage Insurance that may work.
If you dont have 20% equity on the current home refinancing as a rental will be tough since no MI companies are working with investments. You will not be able to count any rental income so you would have to qualify for both - The purchase shouldnt be an issue since you arent obligated on the current home - When you refi it will have to go into your name for you to be on the loan
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