#91 Monday Morning Mortgage Tip: Stacy Himley with Guaranteed Rate

Posted by Shane Andersen on Tuesday, July 2nd, 2019 at 7:34am.

Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Stacy Himley from Guaranteed Rate.  In this episode, Stacy talks about requirements for investment property managers. You can reach Stacy at 605.605.690.2305 or Stacy.Himley@rate.com  Her office is located at 304 4th St Brookings SD, 57006 or on the web at www.Rate.com/StacyHimley



 Income Requirements for Investment Property Managers


Good morning everybody, Shane here from the Brookings Home Team powered by Century 21. It's the fourth of July week.

- Yay!

- Ready to blow up some things.

- Finally feels like summer too.

- It does, it does. She's a little red from the lake. Don't feel sorry for her at all. Today, it is, like I said, Monday morning, 8:15, ready to go here for our Monday Morning Mortgage Tip. As you guys jump on here, please let us know, give us a heart, give us a thumbs up. And feel free to share this video with anybody else you think would benefit from it here. But today is an episode that was requested from a listener that we had a little while ago. And well lets just hit it with Stacy, and kind of go from there. So what is the tip today, Stacy?

- So the tip of the day is sometimes people are interested in becoming a landlord and purchasing investment property. It went, we went from years ago it was super easy.

- Mm-hmm.

- Right, you just start buying 'em up and you can have up to 10 investment properties at once and still be eligible for secondary market financing. Then it got really tight, and it was very difficult to buy investment property. Now it's loosened up a little bit again. The biggest hurdle that people face is for investment property you have to have 20% down. You get even a little bit better rate if you have 25% down. But that 20% down is the biggest thing that people run into. Sometimes they can qualify with the monthly payment, but if you don't have the cash down, you're out. So that's the biggest hurdle. There are ways you can, you can't just get cash. You can't just borrow the money for the down payment unless it's secured. So some people pull out the equity from their primary residence to use that to put down, that works. Some little different options that we can look at for that. But the biggest hurdle is the down payment. Secondly the rates are a little bit higher because it is investment property. You get your best rate on primary, so if you're gonna live in the house that's where you're gonna get your best rate. But they're pretty, they're not horrible. They're still better than a commercial rate. You can still get a 15, 20 or 30 year fixed, where commercial's gonna be more of those balloon type options. So yeah it's very doable, but again the biggest hurdle is that down payment that people face.

- Are credit scores, I'm sure credit scores still play a part, but are they-

- Yep, you have to have in that, you know, good to great type of credit score. You can't be in the lower end. That just makes your rate even worse, and then it makes the payment even worse, things like that. But the biggest thing, yeah, is that down payment. Sometimes people cringe a little bit at the rates, but they're not bad. They're not bad.

- And obviously this is something that you can help with on the investment.

- Yep. Up to four units. So a one to four family unit. That's the other thing I suppose would be if you find like an apartment building that's a six unit, that would have to go commercial. On the residential side you can go up to four, but nothing more than a four unit.

- But you can help in both ways.

- Yep, yep.

- Perfect. All right, well that's just the tip of the ice berg. There's a lot of information that comes with that. So obviously if you have any more questions for Stacy, please let her know. Information I will have on the top, on the bottom, on the sides, wherever your device allows you to see that. So feel free to reach out to her anytime and she'd be happy to talk to you. And if you do have any other questions about this episode or anything else that you'd like to hear about, let us know. We'll answer it on our next episode. So have a safe and fun fourth of July week.

- Yes.

- We will be back next Monday here. But kind of short week for some of us.

- Mm-hmm.

- And some of us not so much.

- Right.

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