All Forum Posts by: Amy Summer
Amy Summer has started 2 posts and replied 5 times.
Post: Conventional Renovation Loan vs. other rehab finance options
- Posts 5
- Votes 1
Quote from @Jason Wray:
Hi Amy,
FNMA Homestyle can take a little longer and require a lot of documentation and GC/Builder approvals. Still a great option but you can speed up the process if you simply buy the property and close with a perosnal loan or LOC for the repairs/renovations. Typically you want the property to be either "liveable" or once the first appraisal is done have the "Subject to" be reasonable enough to where it can be done within 30 days to close after repairs.
The way the market is going right now I would for sure be focusing on properties that are not turn key. Unless of course the Cash flow meets your NOI
@Jason Wray Thank you for the response! The type of property I am looking for would be a buy and hold with the potential to be a rental much later. In other words, it will be my primary residence for at least a few years. I may also potentially need to use some student loans to acquire my master’s degree. So there is no rush. In this case, would the Fannie may loan be the better option?
Post: Conventional Renovation Loan vs. other rehab finance options
- Posts 5
- Votes 1
Hello! First-time homebuyer here. I recently came across the Fannie mae home style loan, which I understand is a conventional renovation mortgage. I want to know what is the benefit to obtaining a property under this type of mortgage vs. doing a traditional conventional mortgage and financing the renovations by other methods (ex: hard money or personal loan). Is this a strategy that most investors use starting out? What are the pros and cons for the home style loan?
Post: Advice for conflicting priorities! Paying for school and a house.
- Posts 5
- Votes 1
@Dave Poeppelmeier Thank you for your reply! I appreciate your advice! In terms of the house hacking strategy, how would that first mortgage + my potential student loans affect my ability to get a second mortgage? I do plan on moving back to my home town after 2 years. What would be my options then?
Post: Advice for conflicting priorities! Paying for school and a house.
- Posts 5
- Votes 1
@Chris Seveney I would plan to purchase the home prior to leaving my current job to start my program. I considered doing a conventional 30 yr. loan and only put about 10% down out of my savings.
Post: Advice for conflicting priorities! Paying for school and a house.
- Posts 5
- Votes 1
Hello BP world! I am simply seeking advice to help sort out some conflicting priorities. I have been searching for my first home/ potential rental, although this would be a buy and hold property at first. However, I recently got accepted into a medical program for my master's degree. I will need to relocate for approximately 2 years, and I will no longer be able to work until I graduate. I have managed to save a substantial amount of money that would either A) cover my entire tuition and living expenses, or B) afford me my first long term property (with future rental potential!) I have considered the idea of taking student loans if that would allow me to invest part of my savings in a property (Conventional 30yr. at 10% down is what I had in mind). If I go down that route and proceed with buying a home, then I would rent it out while I am away. In this case, it would not cash flow, but prevent me from defaulting on my mortgage. By taking student loans, I will also still have the funds for any emergencies.
With all of that said, my question is whether it would be wise to forgo buying a property for now and essentially pay my way through school, OR invest part of my savings prior to starting my program, obtain a property, and carry out student loans for tuition and living expenses. The obvious pro to paying my way through school is that I would remain debt free, but I would have to rebuild my savings and I would miss out on any equity gains for those 2 years. Is this a reasonable plan or am I being overly ambitious?!