Do I qualify to buy another house as an investmentPosted On: September 2011
ASK AN ILLINOIS LOAN OFFICER, WITH JOHN FOLAN
Editor: Tiffany Brewington
Q: House prices have never been lower and foreclosures are at an all-time high. Do I qualify to buy another home as an investment?
A: Yes. If your credit score is above 640 and your income-to-debt ratio is below 50% (including the principle, interest, taxes and insurance and home owner association payment if applicable on the new property), then you can get a loan to purchase an investment property. However, some investment loans may require a higher down payment. You may be able to use the average market rental income for the area that the home is located in to get your income-to-debt ratios down.
As you may remember, we talked about how income-to-debt ratio is calculated in last month’s article.
John Folan is an Illinois Licensed Mortgage Broker at NorthPoint Lending Group, Inc. in Downer’s Grove, Illinois. Have a mortgage question? Please write to firstname.lastname@example.org
Posted On: September 2011
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