All Forum Posts by: Alexander Ross

Welcome to world of "lender overlays". All lenders have these, though this is one is pretty small. Ask for an exception or talk to another lender. 

Thought some of you might enjoy this....The Texas Real Estate Year in Review Report provides annual real estate sales data from a statewide perspective and for 25 metropolitan statistical areas in Texas. Feel free to cut and paste in browser since I can't figure out how to get to work....

https://www.texasrealestate.com/uploads/files/general-files/2016TexasRealEstateYearInReview.pdf

If you have less than 4 rentals and have a fairly high FICO you can put 15% down on a SFH investment. You can choose between PMI and no PMI (higher rate) . This is a common program. If you're looking at a Multi-family here in the metroplex than 25% will be the norm on a conventional loan.

@Travis Hafer Port Aransas is great city. Love the third coast. I've done a investment and a few second home there. I have not heard of this rule either and have closed a few investment property purchases (all at 80% or below) all over Texas.  This could be a guideline for the 85% program that Fannie offers, but that is like having the "golden ticket". I have never had a file qualify for it. 

If you need a quote for 20% down program feel free to PM me. 

Best,

AR

@Steven Ellis seems high, but without a LTV, FICO and loan amount it's hard to tell. If you're putting more than 20% down and have a FICO over 740 I see that rate being about .25-.50 too high and if that's a quote from yesterday rates got a little worse today. PM me if you want another quote to go back at them with.

@Dave Hurt @Russell Brazil The guideline states "The borrower may have INITIALLY purchased the property as one of the following "

• a natural person;
• an eligible inter vivos revocable trust, when the borrower is both the individual establishing the trust and the beneficiary of the trust;
• an eligible land trust when the borrower is the beneficiary of the land trust; or
• an LLC or partnership in which the borrower(s) have an individual or joint ownership of 100%.

It's referring to the how the property was originally purchased. It has nothing to do with the new mortgage applied for. The new mortgage has to follow acceptable Fannie guidelines for title and an LLC is not one of them and this is not a new guideline. The only way to avoid this is by using a portfolio product (meaning non fannie or freddie).

@Tracy Springfield have you tried having a lender qualify you on your tax returns? Mortgage lenders use a different type of qualifying income know as "cash flow" when calculating a self employed borrowers income out and the W2 is only a part of it. The lender will need the last 2 years returns (personal and business) and an recent P/L and Balance Sheet to calculate it out correctly. You might be pleasantly surprised on what they come up with. PM me if you have more questions or want someone qualified to review.

@Gordon A.These types of loans are usually done for primary residences only. If your looking to buy in TX and reside in MA this would considered a second home. If your pay stub and institution are located in MA then being a primary home in TX will be an issue. The down payment minimum usually for a second home going conventional is 10% down. If the credit score is strong enough there can be no PMI, but the rate is tad higher and we call this (LPMI) or lender paid mortgage insurance. Second homes are not able to multi-family in all most all cases due to prevent this type of hack and best used for a primary purchase.

I work with two physicians locally that buy up rentals close to their hospitals to rent to the incoming residents. They also purchase these as rental units. You can PM me for more questions. 

That will only help @Matt Cruz. You're looking for just conventional financing with LPMI. You can actually have LPMI all the way up to 97% LTV on conforming loans (loan amounts below 417K) with your score. The higher the LTV though the rate may increase as well and then so does the monthly payment, but people choose this is the having the cash is more important to them.

FHA loan limits are too low in NC for your purchase price and carry MIP which is more expensive than PMI so don't waste your time looking into that program.

@Matt Cruz Many banks/brokers have programs where you will not have to pay PMI with 5-10%, but they give you a slightly higher rate. This is known as LPMI (lender paid mortgage insurance). The difference in the rate will depend a lot on your credit score and down payment amount, but with a solid fico and 10% down the difference is only about .125 in the rate. I would be happy to email of the difference in payments if you want to see them. You can message me through here.