Here the kicker: rental income can usually be used in the DTI calculation until you have 2 tax returns showing that income. I have heard of cases where a bank would accept copies of leases, rent rolls, and such, to waive the two year requirement, so there might be wiggle room here if you can find the right bank.
Going for 20 loans is nice; put a plan in place and execute to it. If you have the rent roll coming in and have good tenants you can expand but don expect that to happen all at once.
100k house with 20% down is 80k per house Nike Air Max Womens financed = 400/mo in PI if you get a good deal. Then factor property taxes, insurance, and maintenance and conservatively you at 450 but just to be let say $500/mo (which I think is still aggressively low). With 10 of those, you need $5k/mo if you have no renters. It will be difficult to convince a lender to do even this much, considering you have no successful rental history and not enough Nike Air Max Running Shoes 2016
Welcome to BP! I not an expert on matters like this, but I can share what I know. My understanding is that you can do this, but that it will take time. The biggest obstacle to going faster is debt to income ratio (DTI). DTI is calculated by dividing housing payment (PITI) by gross income. This is called the front end DTI. The back end DTI is the housing payment plus all other recurring debt payments divided by gross income. Lenders like to see ratios of 28 and 33% or less, front end and back end. Other factors are considered such as the size of your reserves and how good your credit is, so that can be used to push the numbers up a bit.
3) If my dad is able to get the first five mortgages (which I heard are easier to qualify for) but meets a lot of resistance when trying to qualify for mortgages 6 10 would it be easier for him to qualify for the second five if we put the houses in my name and use my credit? We don really care whose name is on the title we are more interested at getting the maximum number or mortgage loans.
1) The lenders require you to have 2 months PITI as reserve for mortgages 1 4, but for properties 5 10, it jumps to 6 months. Obviously this won affect you at the beginning, but something to factor in for further down the line.
Going slower does have some major benefits. You going to learn a ton from the process of getting the first rolling, so you be going into the subsequent deals with all that added experience.
Hope this helps some. Best of luck with your plans!As you have heard, not all lenders participate in FNMA 5 10 mortgage program. Try shopping around with the larger lenders. They will have more experience with all the paperwork that is required for this financing package.
So, taking Ryan estimate of 500/month for PITI (might be a bit low) on a 100k property w/ 80% financing, and your Dad monthly gross of 6250, his DTI goes up Nike Air Max Womens Cheetah
Thanks in advance for your guidance.
2) Your minimum down payment for a SFH for mortgages 5 10 is 25% as opposed 20% for mortgages 1 4.
by about 8% for each property you purchase, until around property 3 or 4, it gets too high to borrow any more. Then you have to wait until the 2 year mark, when you can start using the rental income in the DTI calculation.
2) If my dad could qualify to get ten mortgage loans for investment properties could he later cosign some additional loans with me? I have good credit, and could provide the down payment etc.
Easiest way to accumulate the most single family homes
1) Is there any way for us to get a combined total of 20 mortgage loans based on our combined 300k savings, good credit and job income? I heard you are allowed up to ten mortgages in one persons name. If we went to a place like Phoenix how hard would it be for him to purchase ten properties that are roughly 100k each and rent for about 1k a month, using a 20% down payment given our resources?
income to cover them.
To purchase and finance a home through Fannie Mae with more than 4 existing financed properties, investors must meet all of the following criteria:
Hi everyone. I have been reading Biggerpockets for a long time and find it to be a valuable resource. Thanks to everyone who contributes. I was wondering if anyone could give me some advice on the best course of action. I have about 100k saved. I work bringing in $1000 a month net but have very low expenses, no car payment. My dad is interested in real estate too, he makes around 75,000 a year. He has about 200k in savings. I don think my dad has perfect credit but I am sure it is Nike Air Max 2016 Pink And Black
You could possibly work around some of this by looking for properties with seller financing. It unlikely you get the cheap rate and 30 yr term that you would with a conventional mortgage though.
Good luck!Hi Jared,
Some other things to allow for in making your plan:
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