All Forum Posts by: Brittany Minocchi

Are you planning to use the income from your house hack to qualify for your next property? If so, you'll need to look at a multifamily, like a duplex. You can count the income from a single family if it's an investment property, but in your case, it would be your primary residence. This is assuming you did a conventional loan next. Even if you were to refinance into a conventional loan and use FHA on your next property, FHA does not allow boarder income (renting by the room) to be used to qualify you unless you are renting to people related to you by blood, which I'm guessing isn't your plan.

Someone who co-signs for you won’t have any ownership interest in the property, but they will have an obligation to pay the mortgage if you fail to do so. 

Shouldn’t be impossible to find financing for depending on your credit, down payment and the purchase price. 

If you wanted to hang onto that rental property, refinancing would (probably) make your rate increase, which is going to decrease your cash flow. You could look into a HELOC/HELOAN on the investment to get around this, since that would be a second position mortgage with no effect to your first mortgage.

As you mentioned, a HELOC on your primary would also be an option, and would be more cost-effective than the rental option, but at the cost of using your home as collateral.

As someone else said - selling that property and using the proceeds to purchase more properties is a great idea as well. 

If you are only refinancing one property, that will be tough. If you're willing to refinance 2+ properties into a blanket loan, that will help with the minimum loan requirement. There still IS one, but usually you can go lower with this method. LTV will depend on credit. To use new appraised value and get around the seasoning requirement, you'll need to be able to document value add.

I only know of one that functions more like a HELOAN (requires a full draw at closing but has no prepayment penalty) that'll work on single family homes NOT in an LLC.

Hi @Ursula Lovings!

For a multifamily property, depending on which type of loan you plan to go with, you'll likely need 20-25% down. If you want to use the income potential from the property you're purchasing to qualify you without needing to provide income or employment docs, a debt service loan would be an option. If you won't have an issue providing those docs and your DTI is acceptable, you could use traditional financing (assuming 2-4 units, any more than that would require something like a debt service loan).

It sounds like you'll need to access some of your other funds or pull equity to make it work - $15k won't be a large enough down payment for a multi, and don't forget about other fees/closing costs. 

There are 15% options out there but it may be hard to get the property to debt service with the higher LTV right now. Otherwise, you can do a higher down payment (20-25%) on a DSCR or go conventional with 25% down if employment/income/DTI aren't dealbreakers.

@Ana Williams there is only one HELOC I know of for investments, but it requires a full draw at closing. No LLCs and only single family. A HELOAN might also be an option - those are closed end seconds.

Any time you close under a personal name and transfer to an LLC after closing, you run the risk of the loan being called due.