All Forum Posts by: Dennis Muno

Since you are talking about a residential property, temporary rate buydown loans are an options. They are a little different from buying down your rate at the for the duration of your loan like you can with other loans. These loans help your buy down your rate temporarily for 1-3 years usually, with rates reverting to market rate from the time the loan was closed.

If you want a much lower rate than market rates right now and you have a lot more money for downpayment and closing costs,   temporary rate buy down loans that allow you with a buy down your rate to lower your rate significantly for a couple of years with rates increasing back after the temporary rate buydown period(usually 1-3 years; dependent on lender).Not all lenders do this loan product. This is a little different than buying down your rate with other loan products for the full loan duration. This allows you to much more significantly buy down your rate but for a few years.  You could refinance when rates are lower in a couple of years. I don't know however if those loans are allowed for self employed borrowers though

 I have not heard good things about Carrington Mortgage's services tbh

Do you have 2 years of 1099 income? Bank statement loans(either 12 months or 24months) may be a way to go.Given that you will be showing your bank statements(proof of personal/business income), bank statement loans usually have better pricing than DSCR loans. If you go the bank statement loan route, you will likely have to put down more than 5% down

Hello Andrew,

It's great you want to buy using house hacking. It is possible to do this using an FHA 3.5% down loan.You'll have to stay in the property for 1 yr minimum. However, given the fact that you now work part time now that may be an issue. For FHA loans, I believe 75% of your rental income is considered as income for qualification purposes. If you have enough rental income to offset the loss of income, depending on lender guidelines it may be possible. Check with a lender before you proceed.

Bank statement loans/ DSCR could be another way but for DSCR on investment properties, the downpayment amount will usually be 20% down

 Hello Camhaoir,

So let me get it straight. You will be the ones financing but will be using proceeds from your inlaws to do this. Is that right?

Construction financing seems to be the way to go. It will be best to talk with multiple  lenders, compare financing , discuss your situation, get initial pricing before you proceed. 

I think this is a way to start the process

So with private money some private money lenders may be willing to take a look at this. However, second position may spark some hesitancy with some lenders so be prepared for that. I would say it depends on which lender you talk to

I would say don't only look at banks. Look at all kind of lenders(banks, mortgage brokers, private lenders). Yes, it is good to build relationships with lenders but when it comes to finding lending, I believe it is always best to compare financing options with multiple lenders before you proceed. I hope this is meaningful

HELOCs, like any other loan product are possible if you qualify per the lenders guidelines(FICO, combined loan to value maximum, equity etc). What is the value for the properties vs the amount owed on the properties? Is your credit score not too low?Are the investment properties in good shape? These are details that will affect your ability to qualify for a HELOC.

 I would say the only way to know would be to talk to a couple of lenders and then get their numbers for individual loans vs a portfolio loan and compare the numbers. Thanks!

 So, the amount of equity that is allowed to be taken out of the home in cash is usually dependent on each lender. Each lender has their specific guidelines for these