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All Forum Posts by: Dalton Summers

Dalton Summers has started 1 posts and replied 45 times.

Post: New to Real Estate, Closing on first Multifamily

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

I'd have suggested a down payment assistance program for your first purchase. Harder to qualify for cheap/free money as you collect more homes. Maybe wasn't a possibility given the competitiveness of the situation. As a mortgage broker, I've got a 100% financing down payment assistance grant that allows for owner occupants to purchase a duplex. See image below with more details. Alternatively, OHFA's down payment assistance might work - not sure if it allows for duplexes. Also, it's not a grant. Ask your loan officer if you qualify. For a 30 year Conventional loan, I'm at 6.5% rate (6.808% APR) for a duplex, 95% LTV, 780+ FICO, owner occupant.

And I'm assuming they're paying $2k of your closing costs - not your down payment. Down Payment + Closing Costs = Cash to Close.

For your purchase contract, I'd have suggested an escalation clause requiring proof of next best offer upon acceptance. Real estate agents in Ohio aren't allowed to lie about receiving other offers that don't exist, but I've seen it happen before. Escalation clause is an attempt to combat that potential lie. That, and escalation clause prevents you from just blindly offering your best offer out of the gate. The Seller/Listing Agent could've countered the escalation, but that's usually a "tell" to the strength of the competing offers. 

And best of luck on your first one. Go get your next one in 12 months!

Post: Seeking DSCR loan in Cleveland

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

Hi Ron, I'd be happy to provide you a rate quote for a DSCR loan. I'm here in Cleveland area. I know of only one wholesale lender who allows for DSCR loans with a loan amount under $100k.

Post: Does anyone do a DSCR loan for a single property under $100K?

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

United Wholesale Mortgage is only lender I'm aware of that allows for $100k or less for a DSCR loan. Would love to know if any other mortgage brokers are aware of other options? I had a rough appraisal on a UWM loan here in Cleveland OH and we're trying to find a new lender for this $85k DSCR cash out refi.

Post: DSCR or QM loan?

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

Samuel is correct. Conventional rates are more attractive than DSCR rates - all things being equal. If you can qualify for a Conventional loan, that's probably the more affordable option. The most popular non-QM loans are DSCR and Bank Statement loans. QM loans are Conventional, FHA, VA, and USDA. And there are plenty of DSCR loan options with a 1.00 DSCR or no DSCR. Admittedly, a DSCR >1.25 will typically give you a slightly better rate than a DSCR loan at 1.00.

Post: I'm looking for a team for my Investment Properties in Cleveland

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

Give me a shout. I'm dually licensed as a real estate broker and mortgage broker. All my buyer clients receive a 1.75% lender credit when financing through my mortgage company. Eligible for Conventional, FHA, VA, DSCR, and Bank Statement loans. If you need hard money, I can refer you to another lender.

Post: Wanted: Investor-Friendly Realtor in Lorain, OH

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

I can assist with the real estate side of things - and probably the mortgage side too.

Post: Finding tenants in Cleveland

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

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.

Post: Help! Out of State Investing in Ohio

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

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

Post: Investing in College

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32

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.

Post: Seller won’t return EM

Dalton SummersPosted
  • Real Estate Broker
  • Cleveland, OH
  • Posts 48
  • Votes 32
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.