All Forum Posts by: Account Closed

Question for lenders (or anyone).  On an owner occupied 4-plex do all lenders calculate the debt/income the same way?  Would the entire PITIA go against the borrower as housing debt, Then use positive cash flow plus add backs (depreciation, interest, taxes, etc.) as income.  I wish there was a lender who would subtract the cash-flow from the housing debt instead.

Our portfolio product has no limit to number of properties financed.  The rates are lower than any investment loans I have seen.  However, we do require 30% down on the product.  (For 1-4 unit investment properties only).  

@Steven Bennett I can't speak for other lenders as I am not a broker. But in our case we would do the loan on our portfolio product. Similar to the kiddie condo loan that Cara talked about. To do this with a non citizen involved there are significant liquid reserve requirements. The less than 50% occupancy issue may cause a problem, but portfolio loans usually allow for some exceptions. Especially with great compensating factors, like LTV and lots of reserves.

@Ralph R.  Are those investment rates?  If so they are amazing.

Anthony.  We do interest only on multifamily, but only up to 4 units.  Many commercial lenders offer it on 5 units plus.  It's a common program due to investors wanting the cash flow increase that interest only provides.  What are we looking for?  Significant liquid reserves, ability to qualify for the fully indexed payment, and great credit.

@Sheena Varghese  The only think I can add is that when lenders do "delayed financing" you can sometimes get the purchase rate instead of refinance rates.  In our case, we could do it when you got a loan from another property for the cash to buy the new one.  However, the proceeds from the new loan would have to go to paying off the first loan.  The only proceeds you could get would be the actual cash you used.  

Then you are correct on the 2 month seasoning rule.  You will need to be able to show 2 months of statements that don't show the deposit.  Unless there is a niche lender out there that can do otherwise......

Good advise from Stephanie.  I've won/lost many loans because the borrower got a quote from me on one day and a quote from another lender a few days later.  Always take the 2nd (or 3rd or 4th) quote back to the other lenders and see if they can beat or match it.

Good advise from Stephanie.  I've won/lost many loans because the borrower got a quote from me on one day and a quote from another lender a few days later.  Always take the 2nd (or 3rd or 4th) quote back to the other lenders and see if they can beat or match it.

@Daniel Mills  I'm sure there are other lenders that do as well with a portfolio product.   Portfolio doesn't always mean a higher rate.  Andrew made a good point that a broker may be a good option as well as they have many sources to satisfy most niches.