All Forum Posts by: Christian Bachelder

Hey Jacqui,

The reason someone told you that is much simpler than it sounds. Primary residence (if you live in the property) rates are lower than investment rates and usually require significantly less of a down payment. There is no special clause or anything in the lending guidelines for house hacking, but you do get access to the rates for primary residences, which on average, are significantly less than second home and and true investment property rates.

Good luck Mike! Wanted to add as well that there is a exclusion for seasoning requirements if you use the 'delayed financing' rule with conventional lending which allows for an immediate cash out if the property was paid for in cash. Obviously, that doesnt help with rates currently, but just wanted to throw my two cents out there.

We could probably make this work but it would depend on how you are calculating ARV, what your rehab limit is, and what your 'skin in the game' would be, on top of the obvious things like credit score, experience, etc.

Many lenders do have a 60 day seasoning requirement, but some DSCR lenders are more flexible with sourcing transfers, gifts, etc in ways that allow you to get around the guidelines sometime. We go through our consult questionnaire every time someone submits a loan app with us that hopefully uncovers things like this before they are a problem in underwriting.

I'd reach out to a mortgage broker who works with many different DSCR lenders to determine the best fit for your situation!

There would be options, but just as others have shared, the LTV access would be low. This reminds me of a deal we have done in the past, but your options may be somewhat limited depending on how low the FICO is and if we can get a good explanation as to what happened. I'd speak with a mortgage broker familiar with the commercial space, and specifically the non A-paper grade commercial space.

Yeah we can do it depending on how the time you have held the property looks on your P&L. You need a product that can use your STR income instead of long term rents, or take the time period you have so far and see how the cash flow looks when treated as a 12 month period.

Couple different creative options available, but I'd recommend reaching out to a broker familiar with STR DSCR loans and who allow higher LTV cash outs.

Sure can! We do these regularly. There are multiple ways to structure it but if you just wanted to buy outright in your name, you can pursue a foreign national loan, which is a US real estate backed loan for non citizens of the US. Rates and down payment requirements are less competitive than the standard loans here, but still a way for Canadians to buy US property. Speak with a mortgage broker familiar with the produc!

I'd speak with a broker familiar with the BRRRR process and get pre approved for your exit strategy loan before deploying the hard money loan. This is a fairly simple process and the broker can share with you seasoning requirements and answer all other concerns you may have regarding your strategy. We normally clear all the requirements for the cash out before we put a borrower into a hard money loan to give the best guidance possible to avoid you ending up with a hard money loan you cant get out of without selling.

Minimum conventionally speaking is 15% from a Fannie or Freddie backed loan product. Many banks have overlays. A broker could regularly offer 15-20% down but in this environment, 15% doesn't make sense. I'd say speak to a broker until you find one that offers 20%. Thats where we normally end up on most our products.

We currently have one lender offerings 80% LTV on a cash out in our network. Wont be the most competitive rate, but if that extra 5% is the determining factor, feel free to shoot me a DM and I can share the options with you.