All Forum Posts by: Anthony Barbato

@Tammy Ly

The PMI does add more to the monthly payment, but if the property will cash flow with you occupying a unit and the additional PMI, the property will perform even better once you refinance into a conventional loan once you reach the 22% mark in equity in the property. Once you have paid down the loan balance so that you have 22% equity in the property, you can refinance to a conventional loan, which will reduce the monthly payment because of no PMI so therefore your cash flow will be even better!

@Tammy Ly

Great question Tammy! You can use the FHA loan on a fourplex up to $1.4m in Alameda and Contra Costa County. The debt to income requirement is more flexible with FHA than it is with a conventional loan, 55% compared to only 43%, respectively. When looking at deals, it's useful to have an excel sheet that will show your anticipated DTI and cash flow on the property. Talk with a loan officer that specializes in FHA and they will be able to provide a wealth of assistance when making a decision on financing. BiggerPockets has a download that you can use to plug in the revenue and expense in order to estimate your cash flow too.

Hello,

On January 30th of 2020 I am going to buy my first fourplex using an FHA loan. I spoke with a loan officer today and she had mentioned how the Federal Housing Authority was tightening up the requirements on FHA loans. Specifically, the Desktop Underwriter program is no longer approving applicants with 55% DTI, whereas before, it was possible. 50% is now the conservative estimate that I can expect to qualify for.

I am curious what changes are occurring, and if the requirements are becoming tighter on FHA loans, what is prompting the change?

Thank you

@Scott Mac I am the listing real estate agent of this property and I want to find someone who will loan money for my client to buy it from me.

I work as a real estate agent, this is my listing and I am trying to secure financing for my buyer so that they can buy it.

How would you financing the following deal?

Link to the MLS listing: https://maxebrdi.paragonrels.com/publink/default.aspx?GUID=c9c52ad1-8a62-4aa3-b3d6-b032ad83c945&Report=Yes

The property at 339 W Chanslor Ave is in a mutual homes corporation. In exchange for purchasing the share of stock, the owner can live in the unit. Typical banks will not take a mortgage on these units because the property remains in possession of the corporation.

The only lender that I know of is the Atchison Village neighborhood credit union. They will lend up to $65k as a personal loan towards buying a property in the neighborhood.

Is it possible to take out a loan from a private investor at 61% LTV? Here is an example:

170k asking price

-65k personal loan from credit union

-105k loan at 61% LTV from personal investor

Let me know how you might finance this deal in order to make it work. Thank you

Hello,

I want to ask the community how I can get financing for this deal in order to close the sale.

I currently have a listing at 339 W Chanslor Ave in Richmond CA. This neighborhood is set up as a corporation, which means that buyers cannot get a mortgage from a typical lender because the only document that changes hands is a stock certificate, not the title or the deed. The lender can't put a deed of trust on the property because the property remains in possession of the mutual homes corporation. By paying the asking price, the buyer will receive a stock certificate that permits them to live in the unit that they paid for. The property is limited use because it does not belong to the inhabitant. It is maintained using the HOA fees, and all renovations have to be approved by the corporation board first.

The offer on the property has to be all cash, which is deflecting all potential buyers because they do not have the $170k in cash. 

There is one exception, The Atchison Village Credit Union, which is a lender that exists to help make the neighborhood more affordable. They will lend up to $65k in the form of a personal loan at 12% annual interest.

I want to learn from this group how to get the financing for a buyer so that we can get this deal financed and be able to close. I have heard that it may be possible to take out the personal loan for $65k, then take out another loan from a hard money lender or a private investor for the rest of the amount in return for the possession of the stock certificate as collateral. Here are the numbers of the potential deal:

$170k sell price value

-$65k personal loan from Atchison Village Credit Union unsecured by the stock certificate

-$105k 61% LTV loan from private investor that is secured by the stock certificate

Any feedback is appreciated.

Link to the MLS listing: https://maxebrdi.paragonrels.com/publink/default.aspx?GUID=c9c52ad1-8a62-4aa3-b3d6-b032ad83c945&Report=Yes

Hello,

I am looking for a contractor for my client to give a bid on putting in the utilities and roads for a 1 acre lot in Oakland for 4 potential units. If you know of someone reach out and we can meet at the lot this week.

Thank you

Hello,

I have a client that has ran out of money during a rehab and is now in search of a $150k loan to finish the project. The project has an after market repair value of 760k, seller bought the property for 270k and owes 465k on it. They can repay the loan in 4 months at 30% interest. How can you put this agreement into writing to ensure that both parties are protected?

Thank you

Hello,

I have a client that is currently rehabbing a home in Maxwell Park and they are looking for a private investor to fund the rest of the rehab. How do I find the best private investor for this deal?

Thank you