Investing in Arizona?
Investment FAQs
Is now a good time to buy an investment property?
There are excellent buying opportunities in Arizona. We are experiencing tremendous growth, which means people will continue to move here, which creates jobs, and this creates the need for housing. As a result, the housing market will be strong over the long term. The key is to purchase the right house, for the right price, in the right location. Mortgage rates for investment properties remain historically low. Lenders continue to make it easier to get a loan on investment real estate which makes purchasing it an attractive investment.
How do I get prequalified for a loan?
It can be done by phone, fax, online or in person. It starts with getting basic information such as your name, address, birthdate and Social Security number. I also need your employment history, as well as details about your income, assets and liabilities. I will ask permission to pull obtain and review your credit report. Once I have this information, I can determine if you qualify for a loan and I will complete and sign a prequalification form called a Loan Status Report (LSR).
What is the minimum down payment required for the purchase of an investment property?
There are loan programs that will lend you 100% of the purchase price. They usually require a high credit score and proof of income and assets. Lenders consider investment properties a higher risk and, therefore charge a higher interest rate. The best interest rates and loan programs require 10% down. You can get on loan for 90% of the purchase price or a first mortgage for 80% and a second mortgage for 10% of the purchase price.
If I am self employed and don't show a lot of income on my tax return, can I still qualify for a loan?
Yes, there are many programs for people that are self employed. They are called "stated income" documentation loans. These loans may have a slightly higher interest rate or require a higher percent as a down payment. This is not true all of the time. Other factors, such as your credit score, value of your assets and debt to income ratio also play a role in the loan requirements.
Can I use my IRA to purchase investment property?
Yes, you can use your IRA, your Roth IRA and/or your 401K to purchase investment real estate. This is an excellent way to diversify your retirement portfolio. It has been permissible by the IRS since IRA's have been available as a way to save for retirement. There are very specific rules and regulations required so it is important to use a realtor and mortgage consultant that are familiar with this. I can represent you and walk you through the steps necessary successfully close on this type of purchase.
