All Forum Posts by: Bryan Maddex

Hey Gustavo!

Yes, Fannie and Freddie both allow Boarder Income but you need a 12 month history of it. As other have said, unless your income changed or you have added debt since you purchases, you usually should qualify for a refinance. 

As far as "should you refinance now"?  Really depends on your loan size, current interest rate, credit score, and value of your home.  Any lender should be able to give you a super quick calculation of estimated savings based on those factors to see if this is a good time for you to refi!  

My team can help in CA if you would like a quick review tomorrow. 

Please run from the lender that told you to do a DSCR loan and then move into the house! That is occupancy fraud and that lender should be reported.

There are "no income" loans in the marketplace. 20% down is required and rates are in the 9s. You also need 12-24 months of reserves so need to hold back some of your down payment money possibly depending on other assets that you may have.  I tell a lot of clients "Just because there is a product, doesn't mean you will like it" lol! There are actually 2 companies that do these no income loans. 

Alternatives?  Can you get a no occupying coborrower to sign with you? If you are retirement age, you can do asset based withdraws from "work related funds" (IRAs/401ks...). Bank statement loans likely will not help you until you have been doing your new venture for 12 months and have some deposit history. 

Feel free to message me if you want to go over the no income options. 

Both 203k and HomeStyle are great products, there is not a "best". I have experience doing both and am happy to help you with your lending needs!

There are some additional things that could help determine which loan product is best for your situation.

203k Best When:
- Credit scores 680-720 or less
- Renovation will improve the value of the home more than 75%
- Renovations will be on or in the home - no new yard projects, only fixing existing
- Higher Debt To Income (can get approval with up to 56.9% dti)

HomeStyle Best When:
- Purchase + Renovation costs will come in higher than FHA Limits
- Home improvements will only improve vale 75% or less 
- 720+ credit or 20% down (of purchase price + reno cost) to avoid PMI
- Exterior Projects (fence, hardscaping, pool, outdoor kitchen)
- Lower Debt To Income (sometimes as high as 50%, many times between 45-50%)
- Renovations that are greater than $35,000 (soon this will move up to $75,000)

Happy to answer any other questions that you may have!