jq26 Posted January 7, 2008 Report Share Posted January 7, 2008 A couple of quick questions to anyone who can assist. I am considering purchasing a home about 60 miles from me in a NJ beachtown in mid-2008. This would be a speculative purchase...driven mainly by current valuations (very affordable) and tens of billions of investment heading into the area between now and 2012. The house would preferably be rented year round for the next few years by locals. Again, there are a lot of IFs that make this purchase very contingent. Qs...1) Would 20% down payment be required? My wife and I have a primary residence, I own a slightly cash-positive rental property, and I'd like to have my name only on this deed (along with second owner, if required- see Q#2). 2) If 20% required, I have a friend that would be willing to split the purchase price to get to 20% down plus full payment of closing cots. Would we have separate mortgages? Do we deed as TIC? 3) What kind of rate in this market? Assume 700 FICOs, with BK filing 48 months ago with no lates after the filing. 4) Is it correct to assume potential rental income could be used towards qualification? Thanks. Much appreciated. Ideas are swirling but I need to know if they are even remotely feasible. Link to comment Share on other sites More sharing options...
liverichly Posted January 7, 2008 Report Share Posted January 7, 2008 Minimum 10% down is being required on investment properties, so your 20% is on target and would be important to eliminate mortgage insurance (increasing cash flow). If you and your friend would go in together on it, you'd both qualify for the same mortgage.. likely you would deed as TIC, but a real estate attorney would be the better place to get advice on that, since it is legal advice. With a qualifying debt ratio, you could expect 30-year fixed rates in the mid 6's. If the property has a rental agreement on it at the time you close, then the rental income can be included to qualify. Link to comment Share on other sites More sharing options...
jq26 Posted January 7, 2008 Author Report Share Posted January 7, 2008 Excellent starting point. Thank you. Link to comment Share on other sites More sharing options...
liverichly Posted January 10, 2008 Report Share Posted January 10, 2008 Welcome. Link to comment Share on other sites More sharing options...
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