Finance Options

I’m buying a house this month and my debt/income ratio will be maxed. I may have an investor to help put down 10% on an investment property.
What kind of finance options do I have to get a loan?

As long as your credit is OK, you should be able to get stated income financing- no documentation of income. So your income can be increased a little in order to qualify.

would I be able to get 100% financing?

What kind of scores do you need to go stated?

Depending on the lender, you can find 100% financing down to a 600 score, but the best rates will be if you have above a 680. The rates for a 100% stated loan with a 600 score can be ugly with traditional lenders.

If you can arrange for 10% down, there are many more options and more favorable terms.

I wish I could put 10% down, but I don’t think it will happen. Unless I get an investor to front the cash or do a HELOC on the home I’m buying for myself this month.

My mid score is 700.

You can definitely get decent financing 100% with a 700 score. However, the home equity loan on your primary home might be a wise choice. 100% investment loans can have ugly rates.

what kind of rates would I get with 100%

What about 10% down?

Just ball park so I can see the difference

Just ballpark, 100% financing, you’re talking at least 6.875% on the 1st and probably 12-13% on the 2nd with an 80/20 combo. If you put 10% down, your rates would probably be more like 6.5%/ 9% or you can qualify for a cash flow ARM at 1% with 10% downpayment which would maximize cash flow.

Thank you, you have been very helpful. Once I close on my house, I will start looking at getting an investment property.