All Forum Posts by: Chayson Descisciolo

@Ray Rhoads As your loan agent mentioned you're going to be hard pressed to find any lender that will take this loan. Self Employed borrowers have had a really tough time finding financing post Dodd Frank, even with the 2 years. This is because traditional banks/lenders are going to go off the income you report to the IRS, which especially for small business is typically really low after expenses/write-offs (investors often run into these issues as well after investment property write-offs). Guidelines have loosened up a bit recently and there are a lot more lenders doing loans for these borrowers using bank statements to show deposits, I even have a few stated programs available, but even these programs still require 2 years self-employment history.

@Frank S. As a general rule of thumb you'll find most larger banks more difficult to work with, especially if you own your own business. They're just a lot tighter with guidelines and have more overlays than your smaller lenders.

If you cancel now you'll be out your appraisal money, but in terms of time as long as you find a good lender you may even close sooner than with Citi. Being in underwriting doesn't really mean all that much, as long as you're able to get your documents in quickly a loan officer that knows what he's doing can get you from initial conversation to underwriting in 24 hours.

@Joe Ort I've got a few investors that will do that loan. Shoot me a message if you want to talk specifics.

@Samantha Miller

I didn't read through this entire thread so someone else may have mentioned this already and your lender definitely should have pivoted to this based on your concerns, but Fannie Mae and Freddie Mac both have products that allow for 3% down without these restrictions. Ask your lender about Home Ready/Home Possible.

Hey @Anthony B. is there a specific reason you say 20 years or just generalizing a long time due to student housing?

@Roberto Costa 6.125% may not be all that abnormal depending on your credit scores and the costs of the loan. If you feel it's high I'd suggest shopping around a bit. If you want a competitive rate I'd stay away from the big banks (wells, chase, etc) and major online lenders like quicken loans, loandepot, etc. They have gigantic margins and terrible rates.

@Dolly La Salle 5.75% for an investment property isn't bad. As others have mentioned rates are going up and the world of 30 year fixed investment property loans in the 4% range are quickly becoming a thing of the past.

In terms of 5.3% of the loan amount for costs, that does sound high if you're just talking about the origination fee. If you're talking all closing costs & prepaids that may not be too bad. Title/escrow fees on a purchase are much higher than a refi and on smaller loans there's probably some points in there. 

If you'd like I can take a look at your loan worksheet/loan estimate and let you know what if I see anything odd. 

Also, it sounds like you're just in the beginning stages of your purchase. With that being the case your rate is most likely not locked and based on current trends you should expect the costs and rate to be higher by the time you're ready to go

Hi @Adrian Olivera Welcome to BP! Since you're an experienced investor it sounds like you'll already have a leg up in starting your investing career. Do you plan on investing in the Boston area? Looking forward to hearing about your progress. Good luck!

-Chayson

@Dolly La Salle A rate of 6.068% sounds a little odd. Are you sure you're not looking at the APR instead? If that is your true rate it does sound a little high, although keep in mind rates have been doing nothing but going up for the past 10 months. Also, the 10 year treasury note which can be seen as an indicator for rates hit it's highest level in years yesterday. You've also got a small loan amount which is a negative for most banks. On the plus side, since your loan amount is small you can afford to pay a couple points and drive the rate back down a bit.

@Pedro Martins I imagine you found an answer to your question here? If so, mind giving us a little TLDR? I'm trying to answer a similar question as we speak.