Yes I know this looks like a stupid question, but i'm for real. I want to buy an apartment for $240,000 and rent it out. The apartment next to it is renting for $1,500/month and vacancy in the area is VERY low like 1.9%. So if I buy the place I shouldn't have any problem renting it out.
I already own 1/4 of the house i'm currently living in. My income is really low and my credit is bad. I'm afraid the people giving out loans won't loan to me because I make like $1,400 a month and am already making mortgage payments of $800 per month.
Will I be able to get a loan. Even though I don't make a lot, I have close to $100,000 cash. That's enough for a 40% down payment. Why should they care if I default. They can just foreclose and make a profit with my large down payment. I live in Honolulu too, where it's stable. That's if I default. I know I will be able to afford the payments, but I'm worried they won't approve me base on their qualification debt to income ratios and what not. I have plenty of other assets to sell too if I ever needed the money to make payments. So question is can I get a loan to buy my second home?
Read more: Can a loan officer just give me a loan to buy a house without looking into my financial situation?
