We own one home which we're trying to sell, have a mortgage on a second one, and would like to buy a third. Will we have to buy it as a rental? How much down payment will we need and what interest rates are available with excellent credit? How about Fannie Mae homes?
Great questions here. I can see that you are not a first time home buyer.
You did not state which home you live in. Lenders allow us to have only one primary home and all others will be considered investment homes.
Sometimes, if the second home is a certain distance (varies by lender) they may consider it a vacation home.
Buying a third home would most likely be considered an investment home and you would have to qualify for it with income, down payment etc.
I cannot speak on interest rates since I'm no longer in the mortgage business, but I would imagine you may need at least 20% down and perhaps even more since the lenders do not have much of a taste for risk right now.
In answer to your question about Fannie Mae homes, Fannie Mae is the lending organization and to find out what homes they may own and have up for sale, just talk with your major banks.
Ask them if they have any REO properties for sale. Since there have been so many foreclosures, I'm certain they have some they want to sell.
If you have excellent credit, cash available and can understand your real estate market, one could make a ton of money buying properties if they do it right.
According to the FHA lending guidelines, is it possible for escrow to be paid out of packet instead of rolled into the loan? What are the guidelines for a 2nd time home owner? These are answered below…