All Forum Posts by: Clint G.

Quick update: I was never able to find a way around the six month ownership seasoning, so I just had to wait. (It's a good thing I did wait- the rates have continued to drop...)

The appraisals came back around 81% LTV, which ruled out most of the local banks (they were all looking for 75% LTV or better.) I found a mortgage banker who was able to get this deal done by doing owner-occupied (95% LTV) on one of the three houses, which lowered the two other houses to 75% LTV.

Which brings up a new question: If I do this deal and get owner occupied financing on one of the houses, what happens if I don't move into that house? How can they find out that I haven't moved into it, and if they do, would they call the loan?

Thanks for all of the responses.

Bryan, thanks again for the comments, and I will let you know how it goes...

Jon, thanks a lot for the insight. I really appreciate it. You wrote:

I'm willing to "play by those rules" because I do need those terms. In your estimation, is it reasonable to think that I could get "conventional" rates (=~5.25% for 30 years), even though this is investment property?

Here's another scenario: I have a VA loan eligibility, and could conceivably purchase the largest rental property at 100% of appraised value for my own personal residence (I know I'd have to move into it, and that would be fine.) At that point, the front two houses would have a 50% LTV, even at 10% below Zillow's estimates. Could I get "conventional" rates on those two rentals then?

Sorry to be such a leech, but I just don't have any other resources to help me with this...

Thanks again.

Bryan (Balk),

I just "followed" you with that information you asked for. I would appreciate any introductions you might be able to facilitate.

Best regards...

(First of all, thanks for the responses, Bryan and Bryan. What are the odds?)

The properties in question are three single-family rental homes. Current LTV is about 80%, but maybe as low as 55%, depending on how the property is appraised; (NCDOT just bought some right of way from me for a per-acre price that would put my LTV at about 55%. Using Zillow.com's Zestimates, the LTV is around 80%.) I'm currently paying 7% fixed on a 30 year mortgage (the former owner is financing).

It was my understanding, based on preliminary discussions with a commercial broker, that the best I could do with a commercial loan was 6.5%, and only 20 year amortization, which wouldn't help me. I really need to get to about 5%, maybe 5.25% (the lower the better), in order for things to improve.

Bryan Balk, I'm inclined to agree with your comments about "this kind of stuff is done all the time". I just don't know where to look, which is why I'm here. Should I talk to community banks? Who in the banks should I try to get in touch with?

Thanks again, guys.

I purchased a few rental houses about six years ago, and want to refinance them to take advantage of these low rates. The deeds are in the name of my LLC now, but if I re-deed the properties in my personal name, I can get a good rate on the mortgages (that's what the broker is telling me.)

Here's the problem: I'm being told I have to wait 6 months after re-deeding before I can refinance. They're calling it an "ownership seasoning" period.

Can anyone provide any insight on this 6 month "ownership seasoning" requirement, and maybe give me some suggestions on how I can avoid it? Is it a federal requirement, or is it just a "good business practice" that bankers adhere to? I'd really, really like to take advantage of these rates, and I'd like to start saving money NOW instead of 6 months from now...

Many thanks.