All Forum Posts by: Dave Skow

Ryan - I would say  yes to the main question ...its  best to  start with using  hypothetical scenario  that is likely higher than you plan to use  ...ask the lender to  use these figures...provide them with all the  data they  request  ...ask them to fully underwrite and  approve the  file  ( versus just  providing a  " pre qualification "  opinion  based off a loan officer  reviewing the data ) ...getting a firm / formal  loan approval commitment  is free and  this should allow you to know  exacatly where you stand

@ Amy .....what type of loan do you have access to with 0% down on a 2plex ? FHA ? conventional ? the future plan of refinancing the 100% ltv loan to eliminate the mortgage insurance in the future has several issues to be aware of ? rates might be higher .....value might not be there .....if refinancing it as a rental - you will have lower loan to value guidelines to work with and higher pricing ( as compared to refinancing it as a primary residence ) ...if you can live with the cash flow you will be able to receive with the initially loan terms , then this would help make a decision easier ..

definitely possible

finding a zero down pmt program likely not possible in king county / snoh county ( unless using a VA loan ) ...your best bet will be a conv. loan program requiring 3% down

if there is another option other than FHA - use it as its likely better than being stuck with the high permanent FHA mortgage insurance for the life of the loan PLUS you would avoid having to pay the UFMIP ( upfront mtg ins premium ) of 1.75%

for a 80% ltv   single family  property Inv  purchase ..rates  likely in the  4.625% - 5.25% range ( depending on loan fees )

Michael - what is the int rate on your present 153K loan ?  some  answers below

1. Is it possible to have a HELOC type loan on a rental property? .......there  are  not many lenders  offering this ......check with the  smaller  lenders / credit unions  and maybe the banks you have relationships with

2. What is the standard loan to value percentage on a rental?......on a  1st mtg  cash back  refinance - 65-70%  ...you will need to  ask any rental  heloc lender this  question but I assume it wont be too much higher

3. From the user community: is their a lender that you would HIGHLY recommend?

4. What is the best type of loan for extracting equity given my scenario?......depending on how much cash is needed  and how long you plan to carry this  debt ...check out a notmal  1st mortgage  cash oout refinance  as an option

Kerri - thanks for the  post ...consider  2 steps :

1) refinancing the FHA loan to a conventional loan to eliminate the FHA mortgage insurance ..the note rate might be slightly higher than your present 3.875% rate but the removal of the FHA MIP will likely leave you with a significantly lower payment that you have now .

2) use a HELOC ( home equity line of credit ) to payoff whatever other debts need to be consolidated .....the required payment on these are " interest only " payments so try to make a larger than required payment so the line balance can decrease ......rates are in the 5-7% range ....interest paid no longer can be written off .......most lenders will go to a 90% cltv ( combined loan to value ) level on these ( as long as you qualify)

thanks for the update ......it sounds like the declines from the lenders  are  consistent .......so continuing the  traditional loan angle  right now  isn't  likely  going to prove  successful  ( I could be  wrong )  .....

ideas :  1) Go to a private lender and get some type of loan from them  2)  as you mentioned that  one person stated  you would qualify for an " asset  based "  loan - try to  locate a  lender that  has a  program you might be able to  use your assets   as collateral for a new loan

is the credit in mid 600s the reason your are getting declined ? or are there other factors .......you and girlfriend wont be able to get VA loan together unless you are married .....you and her might try to get a conventional purchase loan to purchase the property from your parents and use the 20K for the down payment and costs