All Forum Posts by: Andrew Garcia

Hi @Michael Mignogno, yes you can use the profits as a down payment for a loan. The biggest thing is identifying a property within 45 days. Make sure you consult a tax advisor to help.

Hi @Emily Wilson, are you looking to purchase or refinance? The answer is different depending on which one.

Hi @Michael Frigioni, hello from MD!

Using private money is far from your only option. It all depends on what your tax returns show and how much other debt that you have for conventional financing. 

If you cannot go that route, you can use other loans called non-QM loans that have a slightly higher interest rate but it is not obscenely high. The interest rate is typically .5-1% higher on these types of loans, depending on the type and borrower profile.

Hope this helps! Let me know if I can be of any assistance.

@Harrison Lewis depending on the shape of the property, the VA might not lend on it. There are some lenders that offer VA reno programs but that is something to be aware of.

 @Soraya Welch, if you were to get a HELOC or cash out refinance, it would count against your DTI. For the VA, you would need to use 6 months of reserves if you are purchasing a multi-family property. I would talk to a mortgage broker that can help you decide which option is best for you. There are also some creative ways around the DTI issue, depending on your scenario.

@Nick Militello, if your year-to-date income is strong, I can help you with that. Shoot me a message so that we can dive deeper into your scenario.

Hi @William Charles, you will have to utilize a non-QM loan on this. You have two options:

Option 1: Full Doc. Lower rate but stricter underwriting.

Option 2: DSCR. Higher rate but more lenient underwriting.

There are obviously a lot more differences but, in a nutshell, if you value speed and ease over rate, go with DSCR. If you value rate over speed and ease, go with full doc.

Please let me know if I can be of any assistance.

Hi @Account Closed, if you were to refinance your current home, your rate will likely be 2 percent higher than your current rate. Something to keep in mind.

Depending on where your interest rate is currently at, a HELOC might be a better option for you. The downside with that is that most HELOCs are ARMs. With the rising rates, you could end up with a higher interest rate than going with a cash-out. There are some fixed-rate HELOC options as well.

Hope this helps! Let me know if I can be of any assistance.

@Jason G Goepper just sent you a connection request with my email address since I cannot post it on here.

I meant renting out by the room as renting each bedroom on a long-term lease. This works especially well in areas that have a high cost of living and young professionals. You could do AirBnB but that will be riskier, especially since your job is busiest during the season when your AirBnB will be the busiest.

As for the duplex, it really depends on which area you buy in. If you buy in San Francisco, you will not have any cash flow. If you buy in Columbia, SC, you will be cashflowing. Since your area is higher cost of housing, it may or may not be a viable option. You would have to look at what is available on the market and what they rent for.

@Aaron Miller, since you are okay with paying that rate long-term, a cash-out is probably better for you. That way, you lock in the rate without having to worry about the rate going up and up. However, ask the brokers you are shopping with to give you a side-by-side comparison.

I recommend using both a broker and shopping around. Each broker is priced differently so I would shop around with 3-4 different ones.

To properly shop, make sure you get rate quotes on the same day as rates change daily. Then, you will want to ensure you give each lender the exact same information. Finally, you want to ask for “par rate”. That means you will not pay any points to buy down the rate.

You do not need to fill out an entire application to get a rate quote. The lender only needs to ask you a few questions. You have 45 days from your initial credit pull to shop around with as many lenders as you would like without it hurting your credit.

Hope this helps! Let me know if I can be of any assistance or if you want to shop with me as one of the brokers.