All Forum Posts by: Erica Larence-Penna

@John Green I hope they do!  It is so much more efficient and simple.  I think the state laws need to catch up, though.  There are so many benefits to lenders and it would definitely limit any errors at closing, like a missed signature.  Loans would be able to fund quicker, no waiting for closings packages to be shipped, etc.

@Austin Wood congrats! I also locked up my first wholesale deal this weekend. The process depends on the terms of the contract and the offer you have. We went with an offer with no contingencies so that we didn't have to worry about someone walking away after an inspection and we signed the assignment immediately. I'd probably send the P&S over to the buyer immediately so that if they have any issues with it you aren't waiting until after the inspection period to find out.

You don't necessarily need to have the seller sign the assignment, but it doesn't hurt to have them sign it.  I was up front with the seller and she knows exactly what I'm making on the deal, but it can be an uncomfortable situation if they weren't aware or if you're making a lot more than anticipated.

I'd check with your attorney or title company as well and ask them to take a look at everything.

@Nate Truxel As everyone has said, the period is one year. It is possible, however, to have multiple FHA loans at once, but there are restrictions for that (properties have to be more than 100 miles apart). You can always refinance out of the FHA loan, though. We are moving from RI to FL and were considering taking out a second FHA loan, but then we found a different loan program that worked for us.

@Christopher Ruzicka in order to acquire the property with a conventional loan it's going to need to be in livable condition and you're going to be paying lender closing costs twice (at acquisition and when you refinance). Another thing to consider is that they'll likely only lend up to 75-80% LTV.

If you're able to buy cash or use a private lender, that's ideal for acquisition.

If you're still planning to acquire the property with a conventional loan, you'd likely refinance into a conventional loan as well.  The first loan would be paid off when you refinance.

@John Green @Colleen F. Different states have different rules regarding e-closings and remote online notarization.  Also, lenders need to approve e-closings or remote online notarization and most don't.  I work with a couple of lenders who are able to do hybrid closings, but most aren't set up for it.  I'm also in RI and they're pretty strict regarding remote online notarization.  We need to be set up with a solution provider approved by RI, and both the notary and the signer need to be physically located in RI.

@Keegan Darby the deed is the physical document conveying title and title is the legal ownership in the property.  So they have the physical document, but the seller doesn't have title/actually own it?  Are they wholesaling the property?

@Ryan Cleary you do, but you'd be surprised at how many loan programs there are out there. I have found professional loan programs for engineers, doctors, CPAs, lawyers, etc. The biggest perk to them is that they don't count your student loans in your DTI, so it makes it easier to qualify for a mortgage. I wouldn't have been able to qualify for our purchase if this wasn't out there.

@Ryan Cleary you should be able to make it work if you are looking in FL. We were considering doing a second FHA loan because we are moving from RI to Florida, but then we found a really good attorney mortgage program (no PMI, same rates, etc.) so decided against it. Otherwise, I believe you would have to refinance. I did send over someone's contact last week and she is the loan officer we were planning to use for that second FHA loan. She is very knowledgable of that scenario.

@Brenden Mitchum you are correct. I believe they've become stricter on the minimum credit score and some lenders have stopped offering FHA loans altogether.

@Jay Hillelsohn from what I understand, if you refinance within six months after purchasing it, you'll be limited to acquisition costs and closing costs.  You won't be able to recoup anything spent on the rehab.