All Forum Posts by: Dalton Summers

For appraisals:

Paulk Parrish

O:440-476-1559

M: 216-586-6585 ext 103

[email protected]

www.appraisalkeys.com

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!

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.

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.

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.

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.

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

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.