Am wanting to purchase a very , very nice house for $70.000 that we want to rent out to our daughter and her
family in the same town in IN that we live in. The first bank we went to said you can not do that . Only if we paid 20% down. ALso told us if we where purchasing a second home in another city as a vacation home that would be okay. I don't get it. We have A1 credit and bank at this bank. Is there a law saying you can not own two homes in the same city and rent one out?
Answers (1)
FIRST ANSWER
The lender is probably classifying the second home as an investment property. Investment properties are considered higher risk. As such, a higher down payment is required along with higher interest rates. No law against it if you can afford the higher down payment and rates.
Didn’t find what you were looking for? Ask a question!
More Q&A about Home Buying in 85204
View all »
Answered Mon May 18 2009, 14:14 by Patrick Mahony - P… in 85204
Ask a question
Got a real estate question? Get answers from locals, experts and real estate pros.
Email me when…
View all »
1 - 3 of 102
|
|
|
|
|||||||||||
|
|
|
|
|
|
Copyright © 2009
Trulia, Inc. All rights reserved. |
Fair Housing and Equal Opportunity
Fair Housing and Equal Opportunity
Help us improve our service—send us feedback