All Forum Posts by: Catherine Coy

<< You can attempt to get a 'bank statement' loan, based on the money that has run through your account for the past year....couple this with a DSCR loan perhaps... >>

The two loan programs can't be combined.

<< You can use a DSCR [debt service coverage ratio] loan that qualifies you based on the rental income of the property. >>

To qualify for a DSCR loan, most lenders require that you own a primary residence.

According to Elite Personal Finance, in 2021 the safest places to live in California were Clayton, Lafayette, Imperial, and Palos Verdes Estates.  Forget about Clayton, Lafayette and PVE--too expensive--but check out Imperial on realtor.com.  There are at least a dozen houses in Imperial under $300,000.

How much money, exactly, do you have?  In some cases, a person with assets but no job can still get a loan using the trust-assets-as-income loan structure.  You've heard of a "trust fund baby?"  With enough money, you can turn yourself into a trust fund baby.  This loan structure may not fit you now, but keep it in mind.  It works like this:

Create a simple Revocable Living Trust (RLT).  (I always do this for my borrower; no need for an attorney.)  Prepare a Trustee Letter that assigns the asset account to the RLT.  The RLT now owns the asset account.  Divide the amount of money in the RLT by 36 months and voila!--there's your qualifying monthly income.   Works with conforming and jumbo loans, too.

Catherine Coy

Loan Originator

Shore Capital Corporation

One to four units is considered a "single-family residence" in the conforming world. You won't have to find a commercial lender until you get to five units.

Catherine Coy

Loan Originator

Shore Capital Corporation

<< After you get pre-approved with a lender, how long are you 'stuck' before you can pull the plug and look in another area for a property using a different lender? >>

Loan pre-approval applies to you, not the property, to a specific maximum loan amount.  If you're satisfied with the lender that approved you, you can stick with them until you find a property, no matter what market you end up in.

BTW, conforming (Fannie Mae and Freddie Mac) loan limits increased today in every market.  Here's the announcement.

https://tinyurl.com/yzy4nwce

Catherine Coy

Yardley, can you post the Loan Estimate here so we can take a look?

Catherine Coy

Loan Originator

Shore Capital Corporation

In this environment with inventory so low, a builder can ask you to stand on the corner and cluck like a chicken.

Catherine Coy

Loan Originator

Shore Capital Corporation

Yong, there are loans for foreign nationals, but you must be a resident of the United States.  As well, the property must be located in the U.S.

<< Regarding a lender, they will want to know all of your outstanding debt obligations to calculate DTI ratio. >>

Actually, Basit, a DSCR [debt service coverage ratio] loan relies solely on the subject property being able to support itself; that is, does the cash flow support the proposed mortgage payment? Income is not disclosed and DTI is not calculated. The DSCR loan is a fabulous loan for investors.

Catherine Coy

Loan Originator

Shore Capital Corporation