All Forum Posts by: Billy Bob

I've been searching online and it looks like if you had a Chapter 7 BK Fannie has a rule that you cannot get a loan on an investment property for 7 years! Is that correct? If so, what are my options, a local bank that keeps it's loans in house? Thanks in advance!!

@Joe: Thank you! Yes I could put down 10%. At 10% are there lenders that will fit my requirement? Any lenders you could suggest I contact?

@Bill: yes, I have thought about the "mini bubble" in CA bursting. The answers to your question are yes and I appreciate your advice. Do you have any links to articles about a possible CA bubble burst handy?

I've been calling around talking to lenders about a new purchase mortgage. It would be an owner occupied 2 separate units (two houses on one lot). $106,000 purchase price, 5% down. Lender needs to include up to 75% rental income from 2nd unit for qualifying (like FHA). My FICO is 700.

Tri Counties Bank, but their fees are high and they make the first 109 payments at a larger amount. There closing costs and fees are also high, so they're out.

Patelco CU, but it seems their rates are a bit high and I need to call them today and see if they can meet my requirements.

Union Bank Equal Opportunity Mortgage will do what I need, their APR is 5.375% including their MI. This may be an option.

Fremont Bank and they will do what I need only on an FHA, the rate is 3.75% with 0 points. They can't do a 5% conventional because their MI carrier won't insure it.

Does anyone know of any other small banks or lender that loan in CA that meet my criteria? Any that will accept a higher front/back DTI like FHA and Fremont Bank?

Lastly, FHA upfront on my loan is about $1,850. With a rate of 3.75%, it seems FHA could make sense in my case?

Thanks in advance!!!

I don't know where you live, but it may depend on your market and demand. In CA there's pretty good demand. Over two years ago a friend bought a FNMA REO for $300k. The asking was $299k. He beat out the same offer because (he thinks) he was using HomePath financing and was already pre-approved. I have seen many houses in the low price range that went for 5-10% over asking; from investors looking for inexpensive rentals.

Lots of people have the perception that it's a "buyer's" market or they can steal a REO. FNMA prices their homes at what they think is "fair" market value. You can try any offer you like. But here's the caveat: you may not get the house or lose the deal to a higher offer. If you're ok with that, then go ahead. If you really want the house, you may have to pay more more than you "think" it's worth.