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All Forum Posts by: Account Closed

Account Closed has started 2 posts and replied 47 times.

Post: Loans and the lenders non responding

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

Hi Alisha - sometimes local lenders do not know how to make your situation fit the guidelines, and out of embarrassment stop responding...I'm not saying I agree with this practice, but being in the lending business, I've definitely seen it happen before.  Are you looking to buy a primary residence?

Post: Is there a seasoning period for cash buyers?

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

that's correct - the idea is we know you purchased for cash and there is some implicit discount associated with that, so assuming we have a satisfactory appraisal, we can lend up to 70% of market value, within the first 6 mo provided all delay financing excpetions are met.

Post: Is there a seasoning period for cash buyers?

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

hi Brian - here's the deal on delayed financing through Fannie Mae -- if you buy a property in cash, you can take cash out within the first 6 months using the delayed financing exception (other than death, inheritance or divorce this is the only way to take cash out on a conventional loan within the first 6 months) -- 1) all money used to purchase the property must be your money. You have to present the closing statement to the lender and source of funds to prove the property was purchased with your cash (can be borrowed from HELOC, etc as well). The loan must disburse no more than 6 months from the date you purchased the property. 2) the lender can you lend you up to 70% of the MARKET VALUE (per an appraisal) of the home (not the purchase price), provided 70% of market value is not greater than the original purchase price. Keep in mind the rehab must be complete and the property condition must adhere to FNMA standards from an appraisal standpoint (all rooms must be finished, painted, etc., and meet applicable state laws related to carbon monoxide detectors, water heaters, etc.). You can typically qualify for this so long as you will not have more than 10 financed 1-4 unit residential properties after taking the cash out. Feel free to PM me with any additional questions

Post: Seasoning period for cash buyers?

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

hi Brian - here's the deal on delayed financing through Fannie Mae -- if you buy a property in cash, you can take cash out within the first 6 months using the delayed financing exception (other than death, inheritance or divorce this is the only way to take cash out on a conventional loan within the first 6 months) -- 1) all money used to purchase the property must be your money. You have to present the closing statement to the lender and source of funds to prove the property was purchased with your cash (can be borrowed from HELOC, etc as well). The loan must disburse no more than 6 months from the date you purchased the property. 2) the lender can you lend you up to 70% of the MARKET VALUE (per an appraisal) of the home (not the purchase price), provided 70% of market value is not greater than the original purchase price. Keep in mind the rehab must be complete and the property condition must adhere to FNMA standards from an appraisal standpoint (all rooms must be finished, painted, etc., and meet applicable state laws related to carbon monoxide detectors, water heaters, etc.). You can typically qualify for this so long as you will not have more than 10 financed 1-4 unit residential properties after taking the cash out. Feel free to PM me with any additional questions

Post: First Home in Atlanta/ House Hack

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

I agree with Ryan - any property with an HOA is going to make things more difficult to you in terms of renting. PLUS you don't own any land when you buy a condo. I would look for a multiunit, to start, maybe one that you don't mind living in one of the units and eventually you can transition into renting all units out once you buy the next multiunit. Do you want to buy in cash and then get a loan after the fact, or use financing to purchase a loan?

Post: Denver Bank Lending Basics

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

I wouldn't necessarily work with a local lender unless they are best price or can provide a special service as a result of being local.  If you are looking for the best deal and the best service, shop around on the internet.

Post: Cash out of rental without a mortgage

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

@Kellen M  Alexander is exactly right.  Here's what you do, assuming the property is FNMA lendable/eligible and you are eligible for a conventional Fannie Mae loan. -- You buy the property in cash to get the reduction in price.  You will need a copy of the closing statement to prove it was an all cash purchase and then you will also need to document the source of the funds used to purchase the property in order to prove none of the money was gifted and that it was all your money.  You then call a lender like myself or another bank to refinance the property.  We can lend up to 70% of the MARKET value of the property (so not the price you paid, but the value based on a 3rd party appraisal), assuming 70% of the market value is not greater than the actual purchase price.  The loan MUST close within 6 months of you purchasing the property.  This is all required in order the meet the delayed financing Fannie Mae exception that Alex mentioned.

Post: Hello from San Diego, California

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

@Tommy Nguyen most investors will look in the lower income areas of LA (there happens to be a large amount of multiunits there) but over the past few years investors have bought up all the CA real estate and driven the prices up, so a lot of investors are looking to the Midwest or east coast for investment opportunity.  The problem you have there is you don't have the same upside appreciation as you do in the CA market, especially since you start at a lower price point (so 10% on 300k property is only 30k vs. 10% on 600k property).  It's tough right now without having a large amount of capital to put down and also rehab the property.  But there is still plenty of opportunity in states like Connecticut, Oklahoma, iowa, Illinois and Indiana for example.  If you can find a steal or a desperate seller in CA, go for it!

Post: I'm near the end of my 6 property limit with traditional banks

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

Anyone that lends 'non QM' and/or services their own portfolio so that they can write their own rules.  However, bear in mind that this typically comes with worse pricing since you no longer fit the traditional conforming/FNMA box.

You can buy up to 10, but you can't take cash out on any of the rental properties once you own more than 6 financed properties unless you buy with cash and take the cash out within the first 6 months by meeting the delayed financing excpetion

Post: I'm near the end of my 6 property limit with traditional banks

Account ClosedPosted
  • Lender
  • Costa Mesa, CA
  • Posts 51
  • Votes 19

Jeff is correct, and Fannie also moved the property limit from 4 to 6 as the basis for when you fall under the 'multiple financed property' guidelines.

The other question Brent is are all of your properties financed?  That's the critical question as you can own as many properties as you'd like, the only relevant part is whether they are financed.