loan for rental property
|Posted by: Moonbeam1948 Apr 27 2003, 10:31 AM|
|I am having problems of getting a loan on rental that I own . the property is free and clear of any mortgages . But is in need of repairs . The area of town that it’s is boom for property in that area . I have been offered $ 89,500 for the property , but one appraisaler said that the property is only worth $ 30,000. I know better , because other property in area have sold for more with less land . The appraisaler , then siad that he known a investor that would live to buy the property . I said that the property is not for sale . So my question how to I get a loan for this property .|
|Posted by: loanuniverse Apr 28 2003, 01:53 PM|
The first thing that I would say is stay away from appraisers that have an interest in the property whether it is a direct interest or an indirect one by way of a referral. Even if the referral is completely innocent, it leaves an illusion of impropriety. If you want to get an idea of what the property is worth, you can use several tools available for free in the internet such as realtor.com and get a list of comparable sales.
How to go about getting a loan in the property depends on whether you have a tenant in place already. If you do, it is a matter of using the formula located here to find out how much you would qualify for. If the property is vacant, it gets a little bit more difficult as you would have to show that your regular income from your job will be enough to either pay the loan for the whole term or for a long enough period of time before it can be rented and the property can pay the loan.
I recommend that you approach a community banker with your request in person! . Nothing beats being able to see someone face to face. Make sure that you have at least the following information when you go see the loan officer.
1- Amount requested Best to keep it at 75% of estimated value or below
2- Purpose of the loan Preferably to improve the property instead of a cash-out
3- An idea of how much the property is worth.
Hope this helps.