I have good credit and stable job, and I just refinanced my current home at 4.65% fixed for 30 yrs and really lowered my payment. I’d like turn this current home into an investment property and then buy another home with zero or 3 percent down, 5 percent down, etc. Is it difficult at this time?
I’m getting an FHA loan which includes a 3.5% down payment.
Do I still have to pay mortgage insurance or will that be covered by FHA?
I don’t think that they even have zero % down mortgages anymore, although I may be wrong. I think that they are encouraging people to have at least 5% down. .
Its not impossible – find a “buyer’s broker” to help you find the right deal.
For a second home we were recenly told the banks want anywhere from 20-30 percent down sometimes more. if it were your residence and first home you could still do the FHA 3.5 down
Due to the buy and bail guidelines it may be a little more difficult for you.
When you own a home and want to convert it to a rental to buy a new primary residence you will need to qualify for the new loan carrying both mortgage payments without the proposed rent unless you have 25% equity in the rental property or you can document a history of receiving rental income with tax returns. In addition you will need around 6 moths reserves for each mortgage payment.
Hi: Unfortunately, you still have to pay MIP until the principal balance of the home is 80% of the home’s value. It’s disheartening, but the only way to avoid MIP is to come up with 20% down.
I put 8% down last year and I have another 8 more years to go until I can get the MIP taken off! GRRRR!!
The mortgage insurance will be factored into your monthly mortgage payment. Yes you have to pay it.
I hope this has been of some benefit to you, good luck.
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