buying a second home, need mortgage info and help

[amarowsky]

Hey everybody. I'm happy to say I'm soon to be an uncle, my little brother and his girlfriend are recently with child. And currently my little brother rents one of my rooms from me. He makes decent money and is very reliable and responsible with his bills, he's never missed rent.

Here's the situation, a home came on the market about 4 doors down from me. It's not a big home, but an excellent starter home for my little brother and his girl to have with their new child. The house 's asking price right now is $45,000. Its a small home but in a very valuable area where I live in livonia michigan, and in a very good school district, low crime area. I intend to rent the home for roughly $400-500 to them, the cost of mortgage/tax/interest/insurance to me will be right around $340-360. Currently the rent on this home I could get at market rate would be $600-800/mo.

My problem is if I get a loan for this as an investment property mortgage, then my money upfront is more than I was planning on. Currently I'm trying to keep my downpayment and closing costs under $12,000. Becaues that's all I really have in my investment section of my savings.
Investment property mortgage costs;
20% down - $9000
closing costs/titlefee/taxes - $1500 (after my union discount)
concessions asked 2% - this is the MAX seller concession allowed for investment property mortgage.
Total cost for loan on $45,000 house with $1600 annual taxes, With 2% concession. is $12500.



Is there another style of loan I could get for this property? Is there like a way I can just get a mortgage as a second home, for a more conventional loan? With only 10% down and higher concessions? Any ideas or input would be great, Because I suppose my brother will be there for a year or two first with a reliable rent to cover the cost. Basically I'm cool wither a higher monthly rate, I just want to spend hopefully under $10,000 down.

[97guns]

just get an owner occupied loan, tell the bank you intend to live in it and sell your primary.

i have 2 mortgages on rental properties, both are owner occupied loans

[disneysteve]

just get an owner occupied loan, tell the bank you intend to live in it and sell your primary.

i have 2 mortgages on rental properties, both are owner occupied loans

Sorry but this sounds like fraud to me. If you are lying in order to get the loan, what happens if the bank ever finds out?

[97guns]

Sorry but this sounds like fraud to me. If you are lying in order to get the loan, what happens if the bank ever finds out?

if there are any "fraudsters" in this country its the banksters

[amarowsky]

I asked about the owner occupied loan, I asked if I planned to rent out my other room in my current house and move into the new one, if I could then qualify. But the lender said I may be able to, but because of how close my house is to the new one, it would probably not be allowed or accepted by the underwriters. I'm considering a new route now.
My little brother is going to try and buy the house himself. So hopefully he can get some special help as a low income first time buyer. Only problem is he works under the table.his boss is giving him a four dollar per hour raise to offset the 1099 he is going to have to file every year from here out. I just an not sure if he will be able to get the loan with no tax history, even with my cosign on the loan

[Andrew Black]

A broker will be your best bet

The best thing to do is seek advice from a financial broker service. Financial brokers have grown in popularity particularly after banks pretty much destroyed all trust. As intermediaries they only see success if you are matched up, so to speak, with the right lender so lucky for us we wont have to worry about underhanded and extremely dodgy motives! I personally went to a broker and found that it worked for the better!

[amarowsky]

Edited

[amarowsky]

The best thing to do is seek advice from a financial broker service.

Any particular broker you would recommend? Or do they vary in how they help depending on location? if so do you know of any in Michigan?

Thanks for suggestion !

[amarowsky]

I've searched a bunch of investment bankers, securities and brokers, and mortgage companies show up. But I don't know what I'm really looking for, I guess I can just start trying to call them one at a time see what they offer and whatnot.