| Posted by: jjlidderdale@aol.com Mar 5 2003, 08:47 PM |
| My husband and I could use some advice. The situation is: there is a house on a large piece of land that is currently in my husband's family. We have the opportunity to purchase this with the intention on our part to be to build a new home on the same property and rent out the house that is currently there. We have been going round and round whether it would be better to buy the house, and move there with the intent to build in about 18months, then rent out the house. Or should we stay in our house that we have now and buy the other house with intent to rent out from the start. The questions we have are: if we were to move into the house and then rent out at a later date, could we get a lower interest rate because that would be our primary residence? Would our mortgage have to change later when we finally do rent or would we keep that rate? A cousin who is currently living in the house, could they live there up until we sold our house, would a bank have a problem with that since we don't know how long it will take to sell our house? Any advice you can provide us will be very much appreciated. |
| Posted by: loanuniverse Mar 6 2003, 01:03 PM |
Hello there:
One of the cheapest form of financing is “primary residence mortgages”. Not only do you get the benefit of rates that are usually lower than the ones paid for investment properties, but also you can get financing with very little money down. I would think that the way to get the lowest rate and best terms would be to make the new property your primary residence. However, your qualification would depend on whether or not your current residence is paid for and other matters. My advice is to go see a residential lender in your area and be frank as to what it is that you want to accomplish. The lender should be up to date as to what they require in order for you to qualify for their products. I am sorry I could not be of more help, but residential lending is not my area of expertise.
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