Quote:
Originally posted by nicion
Forgetting those issues for the moment, and considering this is an "ask the loan officer" thread... let us explore. Here's the situation. I am a US citizen, though I have worked as an expat for my entire career. I have never had a credit card, nor taken out a loan. I earn a good income, and my living expenses are generally fully paid by my clients. I am considerring investing in property in the US, and with interest rates as they are, it makes more sense to put 20-30% down, and take the balance as a mortgage... then sit back and let the tenant pay that off. I see two primary obstacles to this approach:
- I have no fixed address (usually live in hotels)
- I have no credit history
Given the above, how likely would I be to get approved for a mortgage on an investment property (or two or three...)? Is there anything that can be done to improve the view that a lender would have? Despite good income and virtually no expenses, I am certain the lack of credit history, and possibly moreso the lack of a fixed address, would prove to be problematic.
Looking forward to your thoughts.
-N
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Hmm... I would guess that it wouldn't be too likely. This lack of a permanent address probably wouldn't be too big of a problem, but it may definately have an effect on whether or not you get the loan. The larger problem, however, would be the lack of credit history. I would suggest obtaining some credit history immediately, possibly even a secured credit card. After several months (which it would probably take to find property anyway) I would try to get a mortgage. Hopefully, the interest rates won't increase before you get the chance to take out a mortgage. The fact that it is an investment property may actually help the cause, just make sure you don't over extend yourself. Although it may seem like a good idea at the time, make sure that you can make the payments without any rental income.
Another factor that will help a lot will be your ability to put 20 - 30% down. Although interest rates are low, pay as much down as you fell comfortable with. It is better to earn 3% than pay 5...
Thanks for Posting! If I can be of any more assistance, let me know