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What are the guidlines to purchase a 2nd home/rental home? Debt ratio? Down payment? Cash reserves?etc.?

Posted on: 04th Aug, 2009 11:16 am
My wife & I both have credit scores around 780-800 on all 3 agencies. Both of us can document our income with a combined total of $138,000 annually. We would like to purchase an investment/rental property for around $260,000. What would a lender look for in order for us to qualify? Our current monthly PITI is $2500/monthly. We currently do owe more on our current property than the current value. What possible hurdles would I come acoss?
One thing, you will need a large down payment

Atleast 25- 30% since this will be an investment property

Your DTI and credit score will also a critical role.

But if you cna show that you are able to find a reneter for the new place soon or show that therre is already some one renting then ti may become little easy
Posted on: 05th Aug, 2009 05:26 pm
lunasea808


As youu said you have good credit, one of the big hurdles would be the DTI

Good luck and feel free to ask
Posted on: 05th Aug, 2009 07:05 pm
What are the typical DTI limits on an investment property?
Posted on: 05th Aug, 2009 08:06 pm
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