All Forum Posts by: Account Closed

I agree with Shaun - in fact I would talk to the HOA about all of the FNMA lending req that could create an issue when refinancing a rental condo (delinquency rate, % ownership by 1 entity, etc.)

In a nutshell, you can get the lesser of 70% of market value (per an appraisal) or 50k in your case within the first 6 months, provided you purchased the property in cash and with your own funds. If you occupy the property, you can get a loan at 80% LTV after 6 months have passed

Chris is correct, the only impact this has is if you applied for a government loan in a community property state, which would make the lender have to run your wife's credit even if you applied for a loan individually in your name.  If you are applying for a conventional loan, then it will not.  If you provide tax returns to the lender, you would also need to provide the note and deed for each property your wife owns to show you are not obligated nor do you have ownership in any of her properties

Hi Joe - yes, you can use at least 75% of the MARKET rental income per the appraisal.  Be mindful that if you buy in a stagnant area where tenants have been living for a long time, the market rents may not be a true reflection of the income you could get if you put new tenants in at the true market rate.  Also, you use the word building - is this property more than 4 units?  Feel free to contact me with more specific questions.

Hi Kevin - barring any prepayment penalty, you can do a rate & term refinance at any point after purchasing the property.  Make sure the seller puts a lien on title for the lender to pay off so it is not treated as a cash out refinance. 

hi Andrew - does the property cash flow with only 3.5% down. ultimately you may want to put down as little as possible if the property pays for itself; that way you have the tenants paying off as much of the purchase price as possible since you are more leveraged. can you come up with the $10,500 (3.5% of 300k) and occupy one of the 4 units? I would avoid any silent seconds, down payment assistance programs etc to keep it simple if possible and if you can come up with the down payment. There is no hit to FHA pricing for multiunits so theoretically a 1 unit and 4 unit have the same rate/fee combination, all else equal. Let's talk further so I can answer any more specific questions pertaining to your situation

hi Jared - doing an IRRRL on a VA loan does not free up entitlement because you are still using a VA loan. an IRRRL is simply an interest rate reduction refinance loan, so the amount of entitlement you are using does not change as a result of this type of refinanced. If you refinanced into a conventional loan, then your entitlement should be restored.

you will get a better deal if they lend to you individually instead of lending to the LLC (lower costs, lower rate)

The advantage of financing the property in the name of the LLC is that properties in an LLC do not count against the '10 property financed rule' from FNMA. There are certain lending restrictions once you are individually liable for more than 10 financed properties

hi Shaun - DTI for the mortgage payment includes, the payment, property taxes, homeowner's insurance and HOA if applicable. Generally, The back end DTI includes all of these items + everything that shows up on the credit report

The advantage of putting the property in an LLC (or financing in the name of the LLC) is that it does not count against FNMA 10 property count. This can be critical if you are looking to aquire 10+ 1-4 unit residential properties