All Forum Posts by: Bill Hamilton

Well, mortgage lenders count it. In fact they count it at higher than 100% (can't remember the percentage) because it is usually non-taxable.

Does anyone know a licensed structural engineer who can draw up and sign off on plans for an egress window? Just looking for someone inexpensive. If we were doing the same thing in Denver they wouldn't require one (just changing the height, not the width) but Lakewood does.

Thanks-

Changing or not changing a last name won't matter. I would agree in general with the points made above but will respectfully disagree with @Travis Sperr on one point. While most lender guidelines are  written and adhered to at a national level, there are some state specific oddities. Especially in Community Property states like Kentucky or Idaho. Often times in those states the title company or lender will not allow you to buy a property on your own if you are married. The spouse must be on title at a minimum and sometimes must be on the loan (some of this may have changed....I haven't done a loan in any of those states in a number of years). The reason they do this is that any debts or assets one person acquires while married, are automatically the debts or assets of the spouse, regardless of whether the spouse also signed the paperwork. So if I were to buy a house in just my name and default on it, the lender can go after my spouses income etc. Therefore to protect the asset on the non-buying spouse the title company will insist on the spouse being on the paperwork. I am not sure if any of that is legislated or is just the way it is done. Having worked primarily in Colorado and other non-community property states, I remember being surprised the first time I closed a loan in Kentucky and title sent me a stip for having the spouse sign everything.

I used to be a wholesale AE and a loan officer @Chris Mason and your approach is the norm for most good LO's in my opinion. My first rule on a loan was never offer anything to an underwriter that they didn't ask for and answer their questions with the least amount of info that will satisfy the question. And yes, I wrote most of the LOX's that ended up with an underwriter. In my experience, the UW is looking for specific wording, which I can usually provide but the borrower hasn't a clue how to do that. But it is always the borrowers signature and them verifying what is being sent forward to the UW.

And other than the car/insurance thing not a single UW request/stip is one I haven't had.

The short answer is no. You don't own the property so you have no equity. You would probably have to go with using a credit card or other type of finance.

Well, looking at it from a conforming lenders standpoint, you are asking (one scenario) for $210k to complete one more duplex, while the lender would be paying off a first of $160k. So before closing costs etc. you have a $370k loan against an appraised value of $450k. Take $360k/$450k and you have an LTV of 85% (over 80%). With a 610 score, that's not going to happen except maybe in a JV loan.

Or look at it another way, according to the appraisal, you have two duplexes (I am assuming that based on the posts but I could be misinterpreting that), meaning even with the additional land they are worth $225k each. Lending $210k for finished value of $225k would again mean lending at 95% LTV. That's just not realistic for normal bank lending.

Also, based on the figures I am using, I only see the property being worth a tad over a million rather than two, if you drop 3 more onto the land.

But this is the hard part of only getting the condensed information. If I had the appraisal in front of me along with your proposal to the banks and breakdown of income and expense for the properties I could probably narrow down your issue.

Unless I am missing something, I would venture your only option is JV money currently.

The odds are extremely high that the mortgage going into foreclosure is a second mortgage rather than a first. If you are seriously looking at this property you need to have a local title company run an E&O report. Otherwise you could end up buying out a house on which there is still $400k in outstanding liens.

Think about it logically in the Denver market, anything worth that much in ARV and only owing that little, could be listed on the MLS and sold in a few days to a cash buyer.

If it's for a bank, they won't accept an appraisal you ordered. They can only accept one they ordered through an outside provider. If you want a value to set a sales price etc., ask your realtor, pay for a BPO or order an independent appraisal.

Have your bank give you an "account number" that only allows deposits to that account. This can be done through a business account (possibly other ways but I have an account with Chase that allows for this). Don't put your full account number out there for people to hack.

Not to be mean but....why would you not? Verify receipt of the money for at least a few months and that there is a court order that enforces it. These are the same criteria that a lender would use for purchasing a house. No ones income is guaranteed. All you can or should do is try your best to insure it will continue over the term of the lease.