All Forum Posts by: Brad Sneckner

Hi @Robert Chang! I can help with that. The options are definitely better if you have the 1-2 years, but there are some non-QM options with bank statement programs. The rates just aren't as good, because it's Fannie Mae that is setting the guidelines for self-employment history. 

Give me a call to chat about some details and options!

@Nathaniel Page

Well again, good luck! Maybe I'll see you around soon then!

Cheers!

@Linzey Ledesma

Nice! Agreed, great to connect. Good luck with your search and if you ever need anything I'm happy to help any way I can!

@Nathaniel Page

Hey Nathaniel! Honestly, I think Riverside is kind of clutch for househacking since we have 3 major Universities and a City college. I would recommend looking for something close to UCR if possible. Canyon Crest is a great area (that's where I live actually) and you'll have lots of students to rent rooms to unless COVID has a longer lasting impact on that than we expect.

Feel free to reach out with any financing questions you have!

Good luck!

Hey @Ryan Berry! I'm also local in SoCal (I'm in Riverside) and I lend in Tennessee. If you're interested in conventional financing and working with someone you can meet up with and talk shop over a beer, let me know! 

Good luck sir!

@Melody R. The idea behind an FHA loan is to make it as easy as possible to get into the property. It has more lenient guidelines all around. But the Mortgage Insurance (PMI) is a noticeable cost on the loan. You MAY want to refinance into a conventional loan as soon as possible, but that will depend on the equity in the property, and the rates at that time when you are considering it. If you're at a 3% FHA rate and your PMI is 0.85% (which it is on FHA), you're still paying less than 4% total, so if the conventional rate is 4%+ in a couple of years when you're looking at refinancing, then it may not make sense anyway. On this kind of property, it's all about cost/benefit analysis.

Tyler's information above is spot on. He and I work together on these kinds of deals pretty regularly, so if you need something locally in SoCal, definitely hit him up. He's a rockstar agent. 

Dang @Tyler Hungerford... You'd make a pretty decent lender. HA! 

@Melody R. Tyler is spot on. The FHA low down payment is a great option when you're going to move into one of the units. A lender that knows the rules on this is crucial. Feel free to reach out if you have more questions. Good luck!

Hey @Juan Chavez Raymond is spot on. When you're pulling cash out it's a Fannie Mae limit for 80% so all the lenders follow that guideline. There are a couple of national banks that will do 90% HELOCs though, so you can try that. I'm a local lender in Corona and Riverside so feel free to call me if you have questions or need resources. My cell is below. 

@Michelle Phoenix

Hi Michelle! Great questions. There are a few things you will probably want to consider, and I would be happy to jump on a call with you to go into more detail, but here's a couple of high points:

1. Yes, you will be impacting your DTI for a future purchase. However, it really depends on what your current payment is in relation to what the new payment would be on the cash-out refi. If you've had your home for a long time, and your payment is relatively high because you're at the back end of your loan term, then often your new payment wouldn't go up much because you're extending the loan to a new (presumably) 30yr term. There aren't enough details in your post (because they refer to specifics on your current loan, and the new propposed loan scenario) to say for certain.

1a. The percentage you got to (known as LTV) will impact the rate, and when you max out (80%) the rate is notably higher than when you're in the lower LTV ranges (50-70%).

Again, I would be happy to chat with you on the phone about some specific numbers and let you know what you can expect with different options. I'm a local SoCal lender so happy to help any way I can. The number below is my cell.

Cheers!

@Michelle German I think you're both thinking about the right things. Markets oscillate, and being willing to take some risks is how people are able to capitalize on opportunities like this. But on the brink of retirement, "excessive" risk is not the right move either. With that said, I think there are a couple of things you might want to add into your discussion to help you make the decision:

First, how long until you want to retire? If it's 10 years from now, you'll have plenty of time to get back into the Southern California market if that's what you decide. The chances of prices continuing on this trend for the next 10 years are pretty slim (in my opinion) and you will be able to watch the market and pick your time to get back in. Additionally, you won't be trying to "break into" the SoCal market as many other people trying to move here, you'll have $500k in your hands to get you in the door. 

Secondly, if you are wanting to collect rents passively while you travel the world (Good for you!), ask yourselves if you need those rents to come from California. Given an extra $500k to put in rental property somewhere, I'm not sure Southern California would be my first choice personally. If I was going to be jetting around the globe anyway and not local, I'd probably look at more "landlord friendly" states with better ROI. That could turn into 10-20 units in other markets with a much better rent return, depending on the timing.

Just some additional things you might want to consider. With all that said, if you do decide to look at selling, @Tyler Hungerford is a great resource to talk to. I'm happy to help any way I can as well. 

Good luck to you!