All Forum Posts by: Alex Roter

Hey Chris,

I would look into the cost to get the HomeRun Mortgage. If both the cost and interest rate are comparable to a Conventional Loan, I would say it's a great program--as long as you don't mind working with a bank representative. You may end up working with multiple reps with bad customer service, but at least you'll save hundreds from not having to pay Private Mortgage Insurance.

Hey Mel, 

There are a handful of institutional lenders who can qualify you based on your liquidity, and without considering any W2 or 1099 income (I used to work for one). They qualify based on the cash flow (or potential cash flow) of the subject property, along with your credit score. 

I'm in California, but I'm licensed to do loans for rental properties in Georgia and North Carolina.

Hey Gordon,

To be considered a first-time homebuyer, you cannot have any ownership interest (sole or joint) in a residential property for 3 years prior to purchasing the subject property. Only one borrower on the loan has to meet this requirement to be considered a first-time homebuyer.

Hey Sean, you may want to consider a 203(K) Rehab Loan https://www.hud.gov/program_of...

Or you can apply for a Home Equity Line of Credit and use those funds to pay for the rehab costs. I would discuss this with a mortgage broker to see which option makes the most sense for you.

Hey Samuel,

Just to clear things up, the pre-approval letter is something a mortgage broker produces for you, to show a seller that you have been properly vetted by the broker (collecting income documents, understanding your debts, and credit profile). A prequalification letter means that your file has been properly vetted by a lender, and as long as you can provide them with the documents they have requested from you, then the financing should be secured.

If you get prequalified with a lender, but the circumstances of your file have changed, then you run the risk of getting your loan denied due to the change in circumstance. However, if your new w2 job is in the same line of work as your current job, then the lender will usually be okay with that and go off of the new income source. If you're making less money than before, they may reduce your maximum loan amount allowed. 

On the flipside, let's say you go from w2 income to 1099 (self-employed) income, then you will run into issues due to insufficient work history. 

Hope this helps!

The great place to start would be to connect with a mortgage broker and have them assess your Income vs Total recurring Debts, along with your credit profile. This will help determine how much borrowing power you have and qualify for. 

Hey Candice, such a ✨cool story✨ how you experienced the basement AirBnb rental, firsthand. I believe this will help you provide tenants with a similarly great experience. 

Have you tried connecting with a mortgage broker to get preapproved? They can assess your financial situation and make sure you can afford the price range you are looking at. This will save you time, and help you stand out as a buyer (in the seller's eyes).

Congrats, Heather 👏 Next step is to get out of the FHA loan and avoid paying the Private Mortgage Insurance (PMI).

To address your question on whether it's in your best interest to take a higher interest rate in order for the lender to cover closing costs...Yes, that would be a great option so you don't have to come out-of-pocket for the closing costs. It will increase your monthly payment slightly but rates are so low anyways 🤷

A snapshot of your bank statement showing the money in the account.