All Forum Posts by: Dave Skow

ask them to research /  help them research programs like this one .......

https://www.sandiegocounty.gov/content/sdc/sdhcd/rental-assistance.html

try another lender ...assuming you are looking to purchase the duplex / triplex  as an investment  property - most lenders will  need  to factor in your  present  " housing expense "  in order to  complete the  qualification  calculations  they are required to do ......

one idea  is to possible  frame up the transaction to be an " owner  occupied "   multifamily  purchase scenario

keep your present rate of 4%

either save up the  cash needed  for the next  investment  or as others have said  -  consider using a Home equity line of credit to  access the  equity  needed .....this heloc max limit   will be dependent on  your property value and  the current balance on the 1st mtg  .,.....assuming you can get at least a 90K  heloc - you can then  use  whatever amount of advances  you need   for  * down payment on rental * rehabbing  etc

even though the heloc rate will be higher than the rate you can get on a cash out refinance - the outstanding balance that will be on the heloc  is realtively small  and thus  this rate  concern isn't that large

thanks for the post / question

yes -there is a difference in qualifying for a business loan for the property and qualifying for a "refinance" type loan.......the refinance  options will  leave you with better  loan terms 

are you trying to pull  cash from the  property or  just  refinance an existing loan ?    if trying to  access  cash and if its a  true rental  property - this could be a challenge

Jon - that's a great location and an interesting home ......#1) if you haven't  already done  so - get a loan pre approval in place  based on the premise you have your present place  sold  and closed  so that you are assured  you can get  refinanced down the road    ........from the  sound of it  - it doesn't sound as if your income is large enough to  carry  existing debt and  proposed new debt?

 2)  approach  seller  to see if they have  flexibility to  close in 60- 90 days   and provide as much  as you can ...non refundable EM  ...maybe a larger  EM note .....3)   see if they have any flexibility to  carry a note for a  short period of time

thanks

if you haven't already - ask your friends / co workers / neighbors for referrals as this tends to work out well when a loan person knows that their referral source is aware of how they perform for you .....most loan officers can offer FHA loans as these are common programs .....you likely will not any " special " first time home buyers program unless the down payment is an issue

great  question ...student loans are  tricky  .....depending on the  type of student loan you have  and the loan program you might use - the loan underwriting  may vary  based on what payment is  used  for  qualifying  purposes .....if your payment  you make  on the loan is a fixed/ constant amount and if its a  fully amortized amount for the loan  and  if this amount appears on your credit report - more than likley  this is the amount that will be used in your  qualifying ( debt/ income )  ratios ........if this isn't the  case - the lenders may use  1% of the  loan amt ( which  could be higher that the actual payment you make ) ...............get in touch  with a lender / loan officer ...get pre approved  so you know how this  is treated   ..this process is  free and  should be relatively easy .....by doing this  you will answer many of your own questions ...I hope this  helps

good outline ...possible  risks/ downsides to the idea of the cash out refinance : 1) rate/ terms  ?..you might  get an idea from your mortgage person  regarding rate / fees / costs / payments  for this idea   using todays  pricing  just so you are aware  2)  your lender is likely  going to have to use the lesser of the  acquisition price or  appraised value  3)   ask your lender for the maximum loan to  value  they can go up to ...it may be only 65% - 70%   whereas  if you used financing to but the  property - you might be able to go up to a  85% ltv  is desired and thus  keep more of your capital  freed up  

try to  get an idea  what lender (s)  has  made loans in the complex in the past few years and then contact them ...you might also  check with the smaller  to mid size banks and credit unions in  the  condos  area  as they may not be as concerned with this issue

Ellie - obtain the funds needed to acquire the property  from friend / relative ...pay seller the  cash ...have a private note set up between yourself and donor)   with specific  terms  for repayment ...make sure the  rate  agreed to is  a realistic  market type rate ) and also make sure that a formal lien is  filed for the loan  and also make sure you formally go into the title  .........I would suggest making a separate agreement / arrangement for the  funds  you are  borrowing for the  construction ......  several  years from now when you refinance ,  the  value  of the building  should  hopefully support the loan amount  you will need  in order to  pay back  your donor