If you are like most investors out there right now, you have spotted some great deals and run the numbers and everything looks great. But why can't you get finannced? There could be several reasons, including the following:
1. Your numbers aren't realistic to your lender
2. Property type is not able to be financed ( Dome house, houseboat or crack house)
3. You don't have the right lender chosen!
Assuming you know what you are doing, #1 AND #2 should not be a problem. So it can only be #3! You have the wrong lender!!!
If you have done your homework before buying the property you should already know where your financing is coming from. If not, then you may be asking for trouble. Don't think that because you are buying a 1-4 unit property that you can walk into a regular bank or mortgage company and walk out with a FNMA loan...I have had numerous clients lose the deal because they underestimated their downpayment or even the terms of financing they would be able to get.
Buyers should be aware of several things before looking for financing:
How many properties do you currently own? *If it is more than 4 then you can forget about FNMA financing because you have already reached your limit! FHA financing? Not on an investment property!! What about repairs/rehab? All of these factors can affect what you end up with for loan terms and where you can actually get them financed...
Stay tuned to my blog when I share with you the best places to find financing for your investment purchases!
:)
Follow Marc Dube's blog for tips on local real estate and lending.
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