I recall in the past seeing people mention there’s issues getting mortgages below a certain amount. I’m looking at picking up a second property (condo) that would be rented out to my disabled, retired mother. No crazy profit here, just providing her a good place to live now that she needs to move out of the apartment she’s been in for the last 13 years. There are a number of cheaper condos in decent neighborhoods that fit the price range we need to be in to get her in there at a price she can live with and cover our costs. Fortunately though it does seem it’s getting easier and easier for the lower income folks to get financed but it hasn’t quite made these cheaper units skyrocket yet so we’re lucky in that respect. Any suggestions for lenders that might do a loan in the $50-60k range? Most likely I’d probably do a 15 year mortgage on it because I’m still in the positive even on the higher payment. Property by the definition of the mortgage lenders won’t be able to qualify on it’s own as an income property I’d imagine, we’re fine to have to personally guarantee the loan with our incomes (both have good jobs, good credit).
I’ll probably own this as long as she’s able to live on her own and sell it when she moves out of it. I don’t expect to get rich on appreciation though I do think I’m buying at a good time for my market so that should help some in this respect. To be honest if I break even I’m happy, making a ton of money isn’t the intention here.
PS- Would also consider using the $45-50k equity I have in my primary residence towards this and pay the rest in cash but not sure what my options are here regarding LTV in today’s market. It’s not 2006 anymore but it’s also not 2008. :biggrin Been a long time since I did any research on this stuff so any help, contacts in the mortgage world, etc would be great.