Hello!
So i have a question about getting a investment property/second home mortgage. I closed on my home over a year ago and now want to get a cheap property to rent out. From my research most wont do loans under 50k so i think that might be the price i would be looking to spend. I have been at my job for 8 years and own business for 2 years. im about 80k (after deductions so it could be way more - maybe in the low 100k (TOTAL including w2 job) range.. im not sure how they would calculate my income for self employment. My regular job is 40k btw. My scores will be in the low 700's when i apply .. im thinking mid score of 720 at least since i just paid off my credit card. i have only one medical collection from 5 years ago everything else is good.. no lates no chargeoffs im pretty clean. All credit cards paid off out of 20k i have like 500 spent on one.My DTI i think is around 46% i could be calculating wrong but i have 2 car notes in my name, my mortgage of 1500, $100 per month student loan and and thats it. Im having a hard time finding out info about the requirements. I know i need 20% down, possible reserves but i cant seem to find out much more than that. I am wanting to apply with NFCU since i have both large credit cards and both car loans with them. Any input would be greatly appreciated 
Thank you for your input... do all lenders do Fannie Mae? or do i need to go to them directy? And does my DTI seem high for trying to get an investmnt property? I included my monthly credit card payments (even though they are all paid off)
@lesse wrote:Hello!
So i have a question about getting a investment property/second home mortgage. I closed on my home over a year ago and now want to get a cheap property to rent out. From my research most wont do loans under 50k so i think that might be the price i would be looking to spend. I have been at my job for 8 years and own business for 2 years. im about 80k (after deductions so it could be way more - maybe in the low 100k (TOTAL including w2 job) range.. im not sure how they would calculate my income for self employment. My regular job is 40k btw. My scores will be in the low 700's when i apply .. im thinking mid score of 720 at least since i just paid off my credit card. i have only one medical collection from 5 years ago everything else is good.. no lates no chargeoffs im pretty clean. All credit cards paid off out of 20k i have like 500 spent on one.My DTI i think is around 46% i could be calculating wrong but i have 2 car notes in my name, my mortgage of 1500, $100 per month student loan and and thats it. Im having a hard time finding out info about the requirements. I know i need 20% down, possible reserves but i cant seem to find out much more than that. I am wanting to apply with NFCU since i have both large credit cards and both car loans with them. Any input would be greatly appreciated
Hello Lesse,
My wife and I are going through the same thing right now. We currently have a house thats in her name with a mortgage and have every lender we've talked to has told us that for a second mortgage (Investment Property) they require 25% down. We've been dealing with Navy Federal on the personal and business side any no matter what it still is 25% down. On the business side NFCU offers a Commercial Real Estate loan and a sepertate Investment Property Loan, but both have the same underwriting requirements unfortunatley. The reason being is that when the bubble burst a few years ago a lot of secondary and tertiary properties went into forclosure as they were not the owners primary resident. Best of luck!!