Seeking some advice from a lender !!!

My wife and I really want to buy a VA foreclosure fourplex that is priced at $160,000, $20,000 less than the appraised value and will most likely cash flow. Of course I would verify these numbers. I have an investor that would be willing to put the 10% down and pay for the carrying costs until it is fully rented out. Our only concern is the fact that here in about a week I am going to be out of a job for a little while. Also we are moving here soon and want to buy our own home once we get to where we are going. I am wondering if co-signing on an investment property is going to hurt our ability to get approved for a second loan for our personal residence and if so how much. My wife and I both have excellent credit scores of around the 750 range and have about $15,000 in liquid assets. If anyone has any advice whether or not to proceed with this deal it would be greatly appreciated, as we would need to put in an offer by the 28th of this month if we were to get it. Thanks a lot for the advice.

First of all you definitely need to verify the numbers before you dive into this one.

Second, I would concentrate on your primary residence first. You say that that your credit is great and that you do not have a lot of liquid assets. You will want to get the best financing possible since it is your primary.

I do not know what your income is like so putting a commercial mortgage together prior to your personal home may effect your Debt to Income ratio dramatically and decrease your ability to get a good rate on your primary

Hello, I agree with Mdhaas on this subject. Especially since you will be out of work for some time.

That is what I was thinking. It is just really hard to turn it down since it looks like such a good property. I am definetely just going to focus on my primary residence first though and then begin picking up properties when I am in a better position. Thanks for the help.

Good Luck! :beer:

GOOD LUCK!!

This really isn’t that difficult. Here’s what you need to do.

Is it for sale by owner? If so, your in great shape.

You’re losing your job? How long will it take you to get another job? how much risk are you willing to take with your employment situation?

The property is a 4 plex? Move in to one of the properties until you have enough renters in the other units to move out.

Don’t worry about the investor willing to put 10% down. He should be your last resort. You should be able to get in this property without his help.

I would go for it.

I’d like to know that you won’t have a problem getting a job, but my advise is that if it seems like a good deal to you, and the numbers work, you do have conventional mortgage products that will work for you. You can get a True No Doc…no employment, income or asset verification needed at 95% CLTV ~ interest only on the first 80% to improve cash flow. The appraiser will have to show rental comps that show that there will be a positive income…or break even, so provided that it’s rentable, you should not have to carry the mortgage for long. You can bank the other 5% down for carrying costs until it’s rented, and you do have some assets of your own. Good luck! Sandra

Oh, I forgot…if it’s break even or better, it certainly won’t hurt you for qualifying on our primary residence if you want to go with a full doc loan when you have a job, and if you buy your primary using a No Doc or No Ratio loan, you don’t have to worry about qualifying ratios. Your credit score is so high, you’ll be able to get 100% financing on your primary when you need it.