All Forum Posts by: Bryan Johnson

 I've personally helped a lot of families do this. We will connect with the bank doing the heloc, and get those closing docs so we can detail what the monthly payment will be for the initial draw. We normally just count interest only as well. I've never had to show it season for 90 days either. You just have to count the heloc payment against them. Not hard at all as long as your team is looped in and knows what they are doing. Typically takes 2-3 weeks for the heloc, and I've had those close just a week prior to the new purchase closing. 

 Yea i would think if you show proof that you are making payments, 90% of the time you could probably convince the bank to leave it alone. 

I have a DSCR product but you have to already have 12 months rental history ltr or str. Not sure if they will allow you to proceed as a first time homebuyer.

Did you ever proceed with Brad Smotherman? Was inquiring about it last week actually... 

I'd be more then happy to provide some loan estimates for you to look at as well. But yes, primary residence will yield the lower rates compared to second home. You can get away with a STR with a second home though, if you understand the guidelines. Not sure what your game plan is, but would be happy to provide some extra insight.

As a lender, I'm having these conversations every week. You are not alone in feeling cold feet, so hopefully that makes you feel a little better. Now with that said, I think it's important to get back to your personal budget, and make sure you are doing what's right for you. The tricky part is you will be getting opinions from all types of people right now.. including myself. lol So again I'd take a hard look at your budget and ensure you're ok. Yes, the rates are higher and it's not always ideal, but like you said, the silver lining is your able to go secure a house right now without a massive bidding war. Hopefully rates come down in the next few years, and those that haven't bought will be battling again, and you will be able to knock out a refinance with no hassle. I do believe owning real estate is a massive win compared to renting, but again you have to feel good about it at the end of the day. Congrats on the house! 

Typically the lender wouldn't count a monthly payment if it showed that there was no balance. If you paid it off a month or two before pulling credit, it would show a $0 payment on your credit report as well, but you could still show a payment on your credit report but get documentation showing that it's paid off and be good to go. I've never had to count the payment as if you withdrew the entire heloc amount, i suppose there could be some banks out there with additional overlays? This shouldn't be an issue at all.