All Forum Posts by: Bryan Maddex

 Hey Lance, it all depends on what options the lenders have. Some lenders will have no point options and some lenders will only have 2 point options. Reach out to me and we can talk details and find the best lender / rate / points for your situation!

@Hari Bansha Dulal  I am a mortgage broker and we have several options for 80% cash out refinances with 3 months seasoning with lenders that do not report to personal credit. 

I will send you a DM. 

Hello!   I am a broker and work in 45 states. I am personally located in Charlotte NC but I do have a loan partner on my team that lives in DFW!  She helps me with a ton of my investors and you could have the best of both worlds: Top Producing Loan Officer team with a local connection!

We work with 220+ lenders and can find options for most borrowing needs. Also, we actually shop for our clients!  Most LOs and Brokers send 80% of their business to 1 lender. We placed loans with over 40 lenders just last quarter. 

Would love to connect @Dave Chengoue

Good morning!  I can shop 220+ lenders for you, I will send you a DM  :)

 Hey Leonard!  I lend in 45 states and meet almost none of my clients since covid. The internet makes the world very small.

As far as buying out of state, one challenge I did not see any other replies mention is your occupancy.  Are you purchasing an investment property or 2nd home?   If so, you can use any lender that is licensed in the state you are buying in. 
If you are purchasing a primary home, income could be a challenge if you work at an office. Lenders will want a letter from your employer that states you are allowed to work remote from where you currently live and that this move will not affect your income.  If you need a new job once you move, you will need an offer letter prior to closing on your new home (and you will need 6 months reserves in order to be able to use the offer letter as income). 

Let me know if you have any questions!

Good morning @Joshua Martin

Great thing about a VA mortgage is you can do an IRRRL even after you have moved out of the property! VA loans are the only loans that allow this, and there is no rate penalty for it no longer being your primary home.

With that in mind, you could do a cash out refinance today at a higher rate than current market rates which will create profit on the loan, we can take that profit to pay for your closing costs. This way you have a free or mostly free refinance from a cost perspective.  Your rate will be higher than current, but give you your cash out to use for future opportunities.  If you decide to sell, you will only have paid a little more in interest over the remaining time that you are in your home.   That higher interest will be a lower cost than the closing costs for the refinance so a net gain (depending on your new loan size). 

If you decide to keep your house, you can do an IRRRL after you have made at least 7 payments on your new mortgage. You do not have to live in the home in order to do that!

Last thing to consider is if you are buying a new home, will you want to do 100% financing and will you have the remaining bonus entitlement to do so. This is a quick calculation that we can do to see how much house you can purchase at 100% financing if desired. If you purchase over that limit, you just put 25% of the difference down.  

Example: Lets say you can purchase a new home up to $500k at 100% financing using your bonus or secondary entitlement for a VA mortgage. Now lets say you find a house for $600k. You would only put $25k down on the $600k purchase and you would still not have PMI! $25k is only 4.16% of your new purchase price, heck of a deal.

Thank you for your service and let me know if you want to talk any more details and run actual numbers based on your situation.

Also google their name and cell phone number. I would look for reviews on Zillow, Google Maps, Yelp, Experiance.com.

To look up their license history you can use nmlsconsumeraccess.com, licensed and registered Loan Officers have to report a 10 year employment history. Lets you see if your amazing loan officer was a barista just 6 months ago  ;)

Last, consider working with a broker instead of a small lender. Some brokers (like this one) work with 220+ lenders. Most lenders that I work with give Wholesale Rates (vs retail rates when you go directly to a lender).  Biggest difference will be in pricing. I do not have 5 layers of management that make my rates higher, no lender I work with pays for my office space, licensing, benefits, marketing department, compliance department....  wholesale rates can be much better than retail rates with some lenders. 

FHA 203k is an amazing product and under used! One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments. The calculation uses the following formula:

Total Rent Potential x 75% ≥ PITI (plus HOA if any).

With a 203k Renovation loan, you can also finance in your payments if you are doing a major rehab. 

Also, the term "house hacking" is generally used for your owner occupied home (renting out rooms in your primary home) and that income cannot be used to help you qualify (it is considered boarder income).  In this case, you can use Rental Income from the units that you will not be living in and that income can count to help you qualify.

FHA rates are going to be lower than conventional for you almost always, but FHA does have a 1.75% funding fee. FHA is easier to qualify for and allows for higher debt to income.

If you have not spoken to your lender already, you should also just look into the HomeStyle Renovation loan. You have to put 5% down vs 3.5% down, rates are usually higher, but if you have strong credit, your PMI cost can be cheaper than that of FHA loans. No 1.75% funding fee so conventional loans typically have less closing costs. Lower debt to income allowed as well for conventional.

The main differences (besides rates/underwriting guidelines) is what you can include in your renovation costs. FHA does not allow you to do things outside of the home like adding a fence, hard scaping, retaining walls...   it does allow you to repair things outside of the home to a limit.  Conventional would allow you to add a fence or do yard work in your bid.

I cannot lend to you personally in MA but happy to answer any general questions about the 203k or other Renovation loan programs!

Lots of loan options can close in an LLC, helocs usually need to close in your personal name. I have about 20 options we can shop for you if you like.

What really matters is how long you think you will have this loan.  If you are borrowing $150k, rates will not likely drop enough for you to justify a refinance due to lower rates. If you are borrowing $800k, rates will likely drop enough for you to refinance in the next 2 to 3 years. 

So, what is your loan size? How long do you intend to keep the property? Would you rather set it and forget it and not need to refi again or rather take advantage of low/no closing costs on this loan and plan to be more aggressive on your rate at the time of your refi?

This question never has a "best" answer, only best for your situation!