All Forum Posts by: Dalton Summers

I'd rather purchase a vacant rental if I had my choice. Better than inheriting tenants who may already be a problem. If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

Give me a shout if you'd like a rate quote for your DSCR loan.

Andrew is correct that you can get a multi family property w/ 3.5% down FHA. You'll probably need a co-borrower and someone to gift the down payment.

There's a Conventional loan (FNMA family opportunity loan) that allows your parents to purchase a home for you (and potentially roommates) to rent while you're still in college. The interest rate and down payment requirement are lower than if it were considered a second home or investment property. 

Alternatively, once you have a full time job (or an employment contract), you should be able to qualify for a loan and utilize a Down Payment Assistance program. I have an FHA 100% financing option which is a forgivable grant. OHFA (Ohio Housing Finance Agency) has some down payment assistance options. I don't believe they forgive the down payment amount until you've owned the property for at least 7 years. They also have the Mortgage Tax Credit.

Quote from @Josh Holley:

Quote from @JD Martin:

Quote from @Russell Brazil:

Quote from @JD Martin:

Quote from @Josh Holley:

I just replied that encroachment was shown on previous survey. 

 In that case you should get an attorney involved as encroachment would be a material issue that if known should have been disclosed both to the broker and to any potential buyer. 

 Remember that disclosure laws vary greatly by state, with roughly 50% of states operating under Caveat Emptor...which means no disclosure at all. A quick search shows that Ohio is a Caveat Emptor state with only 1 exception, latent defects. A roof extending over a lot line would not be latent, as it is observable with the naked eye.

 Good point, as I was just thinking about my own state. I don't know Ohio's laws regarding disclosure, so it sounds like that may not be applicable.

 It is only an inch, ridiculous I know. But not noticeable to the naked eye. 

Mortgage surveys have a margin of error of up to a foot if I recall. Also, was it asked why you didn’t switch to a different lender? Sounds like a DSCR loan which means there are at least 100 lender options.

Seller might have a problem if there’s evidence they had a previous survey that reflected the encroachment.

Quote from @James Wise:

Quote from @Dalton Summers:

Hope this helps. https://codes.ohio.gov/ohio-revised-code/section-4735.24

(A) Except as otherwise provided in this section, when earnest money connected to a real estate purchase agreement is deposited in a real estate broker's trust or special account, the broker shall maintain that money in the account in accordance with the terms of the purchase agreement until one of the following occurs:

(1) The transaction closes and the broker disburses the earnest money to the closing or escrow agent or otherwise disburses the money pursuant to the terms of the purchase agreement.

(2) The parties provide the broker with separate written instructions that both parties have signed that specify how the broker is to disburse the earnest money and the broker acts pursuant to those instructions.

(3) The broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded and the broker acts pursuant to the court order.

(4) The earnest money becomes unclaimed funds as defined in division (M)(2) of section 169.02 of the Revised Code and, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker has reported the unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and has remitted all of the earnest money to the director.

(B) A purchase agreement may provide that in the event of a dispute regarding the disbursement of the earnest money, the broker will return the money to the purchaser without notice to the parties unless, within two years from the date the earnest money was deposited in the broker's trust or special account, the broker has received one of the following:

(1) Written instructions signed by both parties specifying how the money is to be disbursed;

(2) Written notice that a court action to resolve the dispute has been filed.

(C)(1) If the parties dispute the disbursement of the earnest money and the purchase agreement contains the provision described in division (B) of this section, not later than the first day of September following the two year anniversary date of the deposit of the earnest money in the broker's account, the broker shall return the earnest money to the purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.

(2) If the broker cannot locate the purchaser at the time the disbursement is due, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker shall report the earnest money as unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and remit all of the earnest money to the director.

(B) A purchase agreement may provide that in the event of a dispute regarding the disbursement of the earnest money, the broker will return the money to the purchaser without notice to the parties unless, within two years from the date the earnest money was deposited in the broker's trust or special account, the broker has received one of the following:

(1) Written instructions signed by both parties specifying how the money is to be disbursed;

(2) Written notice that a court action to resolve the dispute has been filed.

(C)(1) If the parties dispute the disbursement of the earnest money and the purchase agreement contains the provision described in division (B) of this section, not later than the first day of September following the two year anniversary date of the deposit of the earnest money in the broker's account, the broker shall return the earnest money to the purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.

(2) If the broker cannot locate the purchaser at the time the disbursement is due, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker shall report the earnest money as unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and remit all of the earnest money to the director.

Not that this isn't good info for people, but to clarify, HoltonWise has not and did not ever hold any of this buyer's earnest money during this transaction. This buyer sent it to the title company to hold.

The fact that I am not holding his deposit nor do I have the power or authority to sign the paperwork to get his deposit released just further illustrates how much of a slimy move it is for Josh to try to attack my character. A real chump move in my opinion.

Good call, holding earnest money is a nightmare. Let the title companies deal with that. And I can recall only once that a title company released earnest money to the Buyer without requiring the mutual release - worked out in my Buyer client's favor so I didn't complain. Another time my Buyer decided to wait the two years to get her earnest money back.

Hope this helps. https://codes.ohio.gov/ohio-revised-code/section-4735.24

(A) Except as otherwise provided in this section, when earnest money connected to a real estate purchase agreement is deposited in a real estate broker's trust or special account, the broker shall maintain that money in the account in accordance with the terms of the purchase agreement until one of the following occurs:

(1) The transaction closes and the broker disburses the earnest money to the closing or escrow agent or otherwise disburses the money pursuant to the terms of the purchase agreement.

(2) The parties provide the broker with separate written instructions that both parties have signed that specify how the broker is to disburse the earnest money and the broker acts pursuant to those instructions.

(3) The broker receives a copy of a final court order that specifies to whom the earnest money is to be awarded and the broker acts pursuant to the court order.

(4) The earnest money becomes unclaimed funds as defined in division (M)(2) of section 169.02 of the Revised Code and, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker has reported the unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and has remitted all of the earnest money to the director.

(B) A purchase agreement may provide that in the event of a dispute regarding the disbursement of the earnest money, the broker will return the money to the purchaser without notice to the parties unless, within two years from the date the earnest money was deposited in the broker's trust or special account, the broker has received one of the following:

(1) Written instructions signed by both parties specifying how the money is to be disbursed;

(2) Written notice that a court action to resolve the dispute has been filed.

(C)(1) If the parties dispute the disbursement of the earnest money and the purchase agreement contains the provision described in division (B) of this section, not later than the first day of September following the two year anniversary date of the deposit of the earnest money in the broker's account, the broker shall return the earnest money to the purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.

(2) If the broker cannot locate the purchaser at the time the disbursement is due, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker shall report the earnest money as unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and remit all of the earnest money to the director.

(B) A purchase agreement may provide that in the event of a dispute regarding the disbursement of the earnest money, the broker will return the money to the purchaser without notice to the parties unless, within two years from the date the earnest money was deposited in the broker's trust or special account, the broker has received one of the following:

(1) Written instructions signed by both parties specifying how the money is to be disbursed;

(2) Written notice that a court action to resolve the dispute has been filed.

(C)(1) If the parties dispute the disbursement of the earnest money and the purchase agreement contains the provision described in division (B) of this section, not later than the first day of September following the two year anniversary date of the deposit of the earnest money in the broker's account, the broker shall return the earnest money to the purchaser unless the parties provided the broker with written instructions or a notice of a court action as described in division (B) of this section.

(2) If the broker cannot locate the purchaser at the time the disbursement is due, after providing the notice that division (E) of section 169.03 of the Revised Code requires, the broker shall report the earnest money as unclaimed funds to the director of commerce pursuant to section 169.03 of the Revised Code and remit all of the earnest money to the director.

Allen, you mentioned your kids going to college. Friendly reminder you can do a Conventional loan 95% LTV to purchase a home for them. The interest rate is also priced like it's a primary home purchase. Lenders will allow parents to be a non-occupying co-borrower on a home your college student plans to live in.

David Streeter. Streeter Petropouleas, LLC Attorneys at Law

Quote from @Alfath Ahmed:

Quote from @Eva Zino:

Hi everyone,

I'm exploring refinancing options for a property in the Cleveland, OH area and would love some recommendations.

Thanks a lot!

I have some really good lenders that have rates between 6.875 to 7.5 % for DSCR that I can connect you with. I am personally doing a couple re-fi and purchases so that is what I am seeing from the best lenders.

Alfath, what's the APR?

Too many unknowns. I'm happy to provide you a loan comparison of Conventional VS FHA and single family VS multi family. Just give me a shout.