All Forum Posts by: Bradley Showalter

Good Afternoon Colby! There are several factors that go into play such as Credit Score and what shows up on the credit report. I personally would say this is the main factor is the score, most time if the score is above 700 we could look at a Conventional Program such as HomeReady or HomePossible that would allow you to do this house hack with as little at 5% down

If the Credit score is under 700, then we would look at the FHA route with as low as 3.5% down. FHA typically has lower interest rates offered compared to conventional, but you will carry private mortgage insurance (PMI) for the life of the loan if you put less than a 10% down payment, conventional requires PMI until you reach 20% equity in the home.

I would keep an eye out for a lender that could get you a verified approval letter that has been reviewed by an underwriter so that you can ensure you can move forward with whatever loan option the loan officer and you discuss.

Good Morning @Jase Hackman!

I can Agree with @Bob Reinhard on this one! if you can qualify on your own (Depending on the state of course) I always take the route of doing it on your own and then putting the spouse on the title. Depending on the Credit score this could effect the interest rate/closing costs if her credit scores are lower than yours.

However if your spouse on the loan doesn't affect the what was mentioned above then by all means, keep her on the mortgage!

If you have any other questions please let me know! I would be more than happy to help!

Good Morning @Jose Mena Diaz!

I am sorry to hear about the situation that you are currently in! When it comes to the HELOC, I have worked with several people who are in a similar situation looking to utilize a HELOC to consolidate their debts as well. I would weigh out the HELOC option vs a Refinance option depending on what rates are for both and what the payments would look like as well. The main benefit that I would be looking at is by getting the debts paid off would ideally boost your credit score so later on when rates drop again you can refinance again at a lower rate!

If you have any other questions please let me know! I would be more than happy to help!

Good Morning @Breonna Mahana, I apologize for all of the different responses. That is the main issue that I hear when speaking to clients that have been denied. Everything that you have stated seems to be fine to go down a few paths, I would be more than happy to hop on a call with you to see what we can do and if there is an issue, then I will give you an in-depth explanation as to what we can or cannot do. Just let me know! 

If the house is collateral and your name is on the title then more than likely the lender would look at the mortgage payment history within the last 12-24 months, credit scores, etc. If there is any other collateral then that may alter the refinance process. Some lenders may let you close in an LLC, others may not. closing in your name is typically easier from my experience and then at closing put it in your LLC after. I would advise speaking with an attorney or title company to ensure that everything goes smoothly.

@Cristian De Jesus

Hello Cristian,

I would do your due diligence and see what is able to offer you the better deal that suits your situation best. Once you have your credit pulled by one lender you have 30 days to shop around to where your credit score will not be affected after the first initial pull. I would just compare the Loan Estimates together (Mainly in section A to compare the origination charges for the rate you have). Just make sure you are comparing with that same days pricing. In this market with the rates increasing as the are its always best to shop on the same day and then go from there.

If you have any questions or concerns please let me know how I can help!

@Campus Johnson

There are many different factors that go into refinancing out of a hard money loan, for starters are your name will need to be on title to the home and depending on the lender if this hard money loan is secured by some type of collateral then the lender may not be allowed to refinance you out of your current loan

Hope this is helpful and please let me know if you have any questions!

@Keaton Walkowiak

You have lots of great insight here on this. The guidelines that most lenders abide by here are the number of units on the property, down payment, and loan program (FHA/VA/Conventional/USDA). If this is a house hack you are better off and do not have to worry about the assets that you have saved up. If this will just be an investment property that you will not being living in then most lenders will look for roughly 6 months of reserves. Make sure the credit has been built up, work history (income varies lender to lender based on w2, 1099, and self employment), etc. There are plenty of other guidelines that need to be met as well, so if you have any questions please let me know how I can assist!

@Jacob Stan I agree with Andrew on this one. I haven’t dealt with any MSHDA loans and my buddy just is currently doing a House Hack over in Ann Arbor and his had 2 units and got a really good rate any only had to put 3.5% down. Do you have any other lenders that you know of, if not I have some that I can recommend that I have helped clients out with!