Anonymous
Anonymous asked in Politics & GovernmentPolitics · 9 years ago

What do you think is the possibility of this happening?

i got this buddy of mine, he thinks he is going to buy a 4 plex at 3.5% down and then rent out all the units, the cost of the 4 plex is 280K appx, and he makes 30K a year.

do you think he will be approved for the loan?

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  • Anonymous
    9 years ago
    Favorite Answer

    Very doubtful

    Not sure what the max LTV(Loan to value) is on rental property in his market, but 96.5% is very high. Sounds like an FHA home loan.. not rental. My area it is 75% max ltv for rental - 25% down.

    His biggest hurdle is going to be his Debt/Income ratio. Max right now for that income level is around 35%. So.. only if he can get the payments @ 35% of his monthly gross income or less and have no other debt payments included. Not going to happen with a 280k loan.

    Now, in prior years he could have gone to 100% ltv and 50% D/I with No money down, no income verification and a min score of 540

    Ahh.. the requirements for Affirmative Action Loans brought to you by Democrats (1994) were retarded. Fannie Mae would still buy them from the bank and sell them to Wall Street.

    We live in the unintended consequences of Democrats Affordable Housing schemes as we speak.

  • Anonymous
    9 years ago

    LOL, no.

    "is 280K appx, and he makes 30K a year"

    Thats when the banker says "come again"?

  • Anonymous
    9 years ago

    280k must be some where cold,In San Diego that would be about 460k.

  • ?
    Lv 4
    9 years ago

    Actually yes I think there is a good chance he'll get approved if he has enough saved back, and has good assets.

    It's called exploiting the dumb. :D ...

    He's kind of exploiting himself in this case though.

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  • 9 years ago

    Yes ,He will be approved .Have you heard of predatory capitalism.? That's how they make money and property.Approving loans and mortgages even though people can't really afford them.

  • pooks
    Lv 6
    9 years ago

    if clinton, cuomo, barney frank and dodd have anything to say, he's a shoe in for that house.

  • 9 years ago

    Is he a liberal or conservative? This is the politics section

  • Anonymous
    9 years ago

    No.

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