All Forum Posts by: Account Closed

@Roy N.

By manufactured, in this instance, it is taken to mean something manufactured off site and transported to the location of the home or lot, then installed semi-permanently.  Modular is usually built better to a different code (but not always) and usually transported differently by being transported on a flat-bed truck (but not always).

HUD sets the definition on FHA loans. Individual lenders can have differing definitions, too, so better to check with the lender under consideration.

Hi Boyd,

Please ask away,  and do not ever feel as if this is an annoyance.  If it were, I simply would not answer.  I apologize if my reply came off wrong...email or forums do not often do justice to a tongue in cheek reply when one appends remarks with a Northeast NO? in the form of a question.  

So yeah, you could do what you want to do, but probably not purchasing manufactured housing for at least a couple of years, until you filed some tax returns. However, there is always 70% financing as Jonathan J. Miller said. And hard money lending. I know very little about HML, other than rates are higher, but there are plenty of posters on this board you could reach out to.

 2 years is standard to be treated like a US borrower, and mortgage folks who say that are correct.  You want more than correct, however, you want something that is germane and applicable to you. That would be having the right work visa when working for a US based company who pays in USD, then you might shorten that 2 years down to 2 months in the US, or 2 weeks (if income is sufficient).

Good luck, I hope you come into the US with your family and make a go it!

@Boyd Hunter

The point of my whole post going back to the beginning is that there exists an 80% LTV financing mortgage program (with good rates, not hard money) that may fit or meet your needs. This financing allows you to enter the U.S. with an appropriate work visa or green card AND an offer letter from a reputable and established U.S. employer (outlining start date, position to be held, role and responsibilities, and salary), And get a mortgage. Period.

So when I post this, why the questions about 2 years?....that was settled few days back, no?

The two year requirement is standard Fannie Mae guidelines and you may note minor variances with some lenders such as one year in the U.S., two years in the U.S. or 2 filed tax returns (which in some instances could take someone nearly 3 years to achieve). Not every lender follows Fannie's rules such as Freddie Mac, FHA, portfolio lenders, Hard Money lenders, etc.

Back to opening paragraph. Manufactured housing is not suitable for this program, but quite okay for others including, FHA (96.5% financing), conventional and HML. Boyd, you probably could not apply for FHA financing until you had been in the US for 2 years or more. Also, the borrower cannot have derogatory credit in the US, and must have a social security number or have applied for one. If you have the appropriate work visa, then you will shortly get the social security number, same thing when having a green card.

@K. Marie P. Manufactured housing A-OK collateral for FHA, for instance. Just not under what Boyd is currently contemplating.

Boyd,

You can get 80% LTV financing as a new arrival with a work visa or a green card, but you must have income...either in receipt of your first paycheck or a contractual letter of employment with salary, start date, and position outlined.

Roy pointed out that if you have a guarantor or a co-signer you may get 80% LTV financing. However, someone in this triangle...either husband or wife or parents, must have verifiable US income, and sufficient income, to boot.

The better way to approach this is to say "Here is my income (or the income of my wife or our parents, minus recurring obligations).  What do I prequalify for?"  You are putting the horse before the cart to ask "I would like to buy this property, how much income do I need?"  Sort of reverse engineering it.

Apparently, manufactured housing is not appropriate collateral...must be a house or a condo or a townhome.

Kyle

The FHA guidelines say that an individual may buy a 2-4 unit in which to live as his or her primary residence, and make a 3.5% down payment.

If your LO (loan officer) is not able to do this loan, immediately we think

1) Your LO's company does not offer FHA loans...this is unlikely but more and more of the big lenders are getting out of FHA mortgages completely.

2) If you already own a lot of rental units in your city, your LO may think that his underwriter will wonder if you are really going to live there, and what your true intentions as to occupancy of the property are going to be. FHA financing is only permitted if you live in the property as your primary residence.

3)  Do you qualify in terms of documented income, and minimum credit score?

Things to look out for. FHA mortgage insurance is a bear and expensive, but somewhat offset by very low 30 year fixed rates (usually below Fannie and Freddie rates). FHA mortgage insurance is for life of loan...it did not use to be this way, and will probably change in the borrower's favor later this year, as FHA is flush with cash after years of losses. Still you need to talk to your loan officer about MIP (mortgage insurance premium)

Also you gotta live in the property full-time and no place else, for a minimum time period after closing...check with your mortgage guy, its usually a year or more.  

Boyd,

You are certainly talking about residential financing, not commercial financing here.  For future deals, commercial would be apartment buildings, hotels/motels, office buildings, etc

Do you have a contractual letter of employment or what some of us call an "offer letter"?  An offer letter is a letter from an employer to start work in the states on a certain date, doing a certain job, at an agreed upon salary.

If so, you may be able to get 80% financing.  No idea if a manufactured home is considered suitable collateral like a single family home or condo might be.  

Hi Boyd,

Are you asking about foreign national financing for residential purposes, such as a house or condo? Or are you asking about commercial financing for foreign nationals such as you might get with an apartment building? If commercial, I can't quite comment on 80% LTV, I am seeing 75% and 70% financing on apartment buildings.

On residential, you can get 80% in the following ways (and it is not an easy trek)

1) Have a work visa and you can get up to 95%-97% LTV, in some cases.

2) Dont have a work visa, then try for up to 90% financing. This does involve pledging liquid assets in an FDIC insured bank, and then10% down payment from the borrower.

PM me and I may be able to recommend a licensed loan officer in California to help you, on residential transactions

If Commercial, I refer you back to Mark.

When you say multi-family, do you mean residential 1-4 units?  Or do you mean 5 units or more, such as an apartment building which is strictly considered a "commercial loan"?

If residential 2-4 units, and you buy a duplex, triplex, 4-plex, the following applies: Live in one unit, make use of FHA financing, then can get the same low interest rate as any other FHA borrower. Those 30 year fixed rates are very low right now for FHA borrowers. And you are eligible for 96.5% LTV financing (although buying a triplex or 4-plex has slightly tougher cash-flow requirements than a duplex under FHA guidelines).

If you are buying commercial property, rates are higher than residential, and I don't know of an interest rate reduction, just because you would live there.  However your down payment might be smaller than what an investor and operator of apartment buildings might encounter.

Well-done!

Hi Tim,

Too many condos, like Miami in 2006 and 2007, everyone walked away from their 10% or 20% down new condo as the sky was falling.

Still, these are trendy, cutting edge condos that bring in a young, well-educated crowd, a lot of amenities.  Smarter minds than mind have done the research and calculate they will fulfill a need and make a profit at $1400-$2900 monthly

I have 3 condos in BroCo and try to console myself that my condos, which rent in the $800 $1000 mark, are not competing with that other demographic...that my tenants benefit from having these other renters become part of BroCo.