All Forum Posts by: Eric Veronica

As @Chris Mason stated the closing costs should be the same.  Interest rates should also be the same.  

A conventional cash out refinance requires you to be in title for 6 months.  The delayed financing exception allows you to apply for a cash out refinance with less than 6 months seasoning.  No difference in rates/fees.

no fix and flip.  I am a conventional lender :-)

Hi Tina, 

Have any of the lenders brought up the Homestyle renovation loan?  This is a conventional  program that will lend up to 95% of the post renovation value.  

If you are applying for a conventional mortgage the guideline states "A minimum history of 2 years of commission income is recommended; however, commission income that has been received for 12 to 24 months may be considered as acceptable income, as long as there are positive factors to reasonably offset the shorter income history"

So less than 2 years is possible.  The term "positive factors" is very gray so youll want to make sure that the loan officer you are working with gets this signed off on before giving the preapproval. This could make the preapproval process take a bit longer but it it is worth the wait.  

@John S. It IS possible that a property could go undetected however there are a two specific things that come to mind which would blow your cover

1. If you are providing tax returns and the property shows up on Schedule E then the lender will see that you own the home.  If the Schedule E shows that you are deducting mortgage interest (line 12) then the underwriter should inquire about that debt.

2. Most lenders pull a report commonly called a "drive report" or a "fraud report".  This report pulls public records from all over the country.  Among other things, this report tells the lender about any properties that a borrower might have ownership interest

Exciting news for anyone following this thread.  This week Freddie Mac announced that the Homepossible minimum down payment requirement is decreasing from 15% down to 5%. 

FHA loans do have value and there are always exceptions, but In most cases FHA is a less desirable financing option than conventional.

Also you stated that you are looking to acquire an investment property. FHA is not an option for investment properties.

If you do a cash out refinance you will likely incur a few thousand dollars in closing costs with the possibility of a lower/higher rate.  If you are selling stocks then it is very likely that you will incur some amount of short or long term capital gain tax.  

This is really an impossible question to answer without accurate. Two different people asking the same exact question could have opposite answers. What is your current mortgage rate vs new rate?  What are the closing costs? What tax bracket are you in?  How much have the stocks appreciated since you purchased?  Will you pay short term or long term cap gains tax. 

Your tax preparer/accountant is probably the best person for this type of question.

Good Luck! 

@Mel Adams Correct on the rental history. The other requirement is having a current housing expense. So you cant live with mom and dad or live rent free and then count rental income in excess of offsetting the new PITI.

Short answer.... No

You took out that debt in only your name so you bear the sole responsibility.  If one day your fiance decides to stop contributing to the monthly payment you are still responsible for the full monthly payment.  Even if you were co-borrowers on the current primary mortgage you would have to qualify with the entire payment if you were applying for a new loan solely in your name.