All Forum Posts by: Ryan Z.

@Jeff Dulla Thank you..  I appreciate the guidance.  Please see my comments below in bold.

- Freddie: This sounds like you are talking about Home Possible (a Freddie program for first time home buyers and targeted areas). Through a normal Freddie loan, there are no income restrictions for being too high.

Yes, Home Possible..  I'm not a first time buyer.. Does this matter?  Area of purchase would be zip 07701 (Red Bank, NJ)

- Fannie: You shouldn't have an issue putting 10% down. In face, based on the scenario above, I would think Fannie/Freddie are your easiest options (not to mention least costly).

Is it possible I'm not meeting a Fannie DTI ratio or something of the sort, and that the same figures meet FHA requirements?

- FHA: I would think this would be the hardest option for you to use. You will have to prove that you have either moved or are moving up in home size compared to the property you already used FHA on. It sounds like that shouldn't be a huge issue but it is an obstacle you would face and there is a level of subjectivity to it.

Understood.  Thanks.

Hi BP:

I'm looking to finance a SF purchase for myself (owner-occupied). I own 2 properties in FL, both single family, one is FHA, other one is FNMA Conv. Both rented and positive cash flow.

Subject Property:  Traditional detached SF property in NJ

Purchase amt 410k

10% down (don't have funds to do 20% unfortunately)

While I am confident in my mtge guy, for prudent measure I wanted to check w/ the BP community to confirm the following..

• Freddie:  'My income is too high' (Can certainly give figures, but not sure how to break it down.. 2017 salary + bonus; Rental income, 2018 salary formally approved and documented, but not effective until July; and 2018 bonus (which I have received already)
• FNMA:  'To get a second FNMA mtge, I need to put down 20%' (which I would like to do, but cannot come up with an extra 41k)
• FHA: 'My only option' (with the 1.75% upfront PMI and monthly PMI for life of the loan). (I know FHA 15yr doesn't have PMI, but I cannot afford the payment on a shorter duration loan)

Any further detail needed?  Please let me know.  I appreciate any advice or feedback.

Ryan

Erentpayment.com:  Can we get an update please?  I thought I was pretty patient, but I haven't heard anything in a while..

Has anyone spoken with an attorney yet?

Hi bp.  I just received last minute results back on 2 title searches on properties that are up for auction tomorrow.  All my ducks are in a row except this one..  According to the title company there is nothing out of the ordinary.  However, I would greatly appreciate if a few seasoned investors could quickly glance over the search results to make sure there are no major red flags.

Please let me know if you wouldn't mind and I'll email it to you.

Thanks,

Ryan

@Jacqueline Gardiner Thank you.. I think I agree..

@Account Closed - So my best bet is to narrow down a short list of 4-5 properties and pay for a title search on each ($1.5-2k total); with the intention of placing a successful bid on one of the 4-5..  Title insurance is probably important as well right?  I'm just trying to best understand how others execute the auction cash purchase..

Thanks,

Ryan

@Jacqueline Gardiner -- How are you making out?  Do you find Lienlist sufficient?  

I am in the same situation.  I'm certainly comfortable paying a small fee for an internet search, but since I'll be buying at auction, I will have to have a search done on a few properties in the event some are bid past my comfort price..

Is paying for a full title search on each property on my short list really the only way to safely pick up a property at auction?

Good idea.  Any tips on finding a lender?  I'm sure I can ask around and be creative, but wanted to see if you had any guidance..

I know it's not traditional for the hard money lenders to lend just for purchase/refinance w/o rehab.  However, if there are some lenders out there, does it seem like a decent idea to pay the fees just to put some 'cash' offers out and grab a deal at a discount that outweighs the cost of points charged?  I would do this only w/ a preapproval already lined up.

Ie: A property listed at 250k, offer 180k all cash and refi out w/ traditional mtge.  Obviously this is all conditional on the deal.  But treat the above only as an example for demonstration sake.

Has anyone done this?  Does it not work for certain reasons?

HI Dan - I actually rented one of those for a month when moving down from NY.  While they sound like a pretty good setup, I want something that is near the coast as I'd like to rent short term but also stay myself (I enjoy the coastal areas).  Call it an investment with a personal perk as I spend Monday - Friday in a tiny apartment.

I do appreciate your advice however.

Ryan