All Forum Posts by: Eric Veronica

@Rachel Degennaro on top of what everyone else said it is important to look at the spreads between a 15 year and a 30 year. 4-5 years ago the interest rate difference was .75% -1.00%. Now that spread has dropped .25% - .50%. On top of that the rate adjustments for investment properties can actually make the 30 year a better rate than a 15 year.

@Brian Holt you really cannot use equity as a down payment if you are attempting to secure conventional fInancIng. There are circumstances where you can get a gift of equity if you are buying from a family member.

@Brian Holt if you have owned the existing rentals for the last few years then tax returns will tell most of the story. If the previous year tax returns do not reflect the full year of rents received then you can provide the leases as well. If the properties are financed and the mortgage payments include tax and insurance escrow then you will want to include a mortgage statement.

@Steven Darrow Some lenders will offer less restrictive rules against single entity concentration if the untits being sold are lowering the single entity concentration. For example, I am working with a developer in VA who currently owns 100 units of a 155 unit condo project. He intends to sell most of the units over the next couple years. Since this project has an obvious path to warrantabilty we have agreed to offer low down payment 30 year fixed loans which we will hold until the project becomes warrantable. Once warrantable we will deliver to Fannie. Does this sound similar to your scenario?

Investment condos with an LTV under 75% should use a limited review form. The limited review form does not ask about investor concentration. With that being said, many lenders do not use the proper questionnaire so you need to make sure you feel confident that your loan officer understand the difference between a full and limited review.