All Forum Posts by: Grant Schroeder

Hi @Raymond Kovats, you can put 3.5% down on an FHA loan with a non occupant co-borrower on an SFR. If you want to have a non occupant coborrower on an FHA loan for a 2-4 unit, you are required to put 25% down because HUD sees this as building your investment portfolio.

If you want to have the family member as a partner/coborrower on a 2-4 unit, they would be required to live there if only putting 3.5% down.

There is nothing against pooling your funds with the family member 2 months ahead of time and “seasoning” the money before buying a 2-4 unit. If you qualify from a debt to income perspective, and just need capital for downpayment and closing costs. Then this could be a good route to explore.

Please feel free to ask more questions about this topic! 

@Matt Anthony Soriano have you thought about house hacking an SFR with roommates or a Duplex near your current job site? And then rinse and repeat at your new job site in 2023? Similar to how a lot of active due military members do it as they are moving every couple years as well quite often.

Hi @Nicholas Covington, Academy Mortgage, who I work for, offers this as a portfolio solution. I have a helped a lot of investors from BP with it in OR, AZ, ID, WA and NM, as well as used it multiple times in my own growing portfolio. I was trying not to self promote on the open forums as BP does not like this. I was simply trying to share a perspective of other loan options out there compared to some of the ones already shared on this thread. Thanks for asking!

@Blake King you cannot go wrong working with Taj on the Oregon Coast. He knows those markets inside out and is great for STR guidance there. If you have any questions on the lending side of things for your "vacation/second home" ;) please do not hesitate to reach out! Glad to answer questions and be a resource for you. My wife and I have an STR in Oregon Wine Country. You cannot go wrong with the Oregon Coast or Wine Country for an STR in my opinion.

@Laura MacDonald you can definitely get a loan as a W2 employee in this situation! There are conventional and portfolio options that would allow you to cash out refi your properties and keep your interest rate in the mid 3s as you stated. I will send you a connection request. Thanks for posting on BP! 

Love the points that @Joe Splitrock makes!

Median housing price is a terrible metric for home appreciation in America that the media loves to wag a stick at and say the housing market is slowing down or speeding up. The mean home price in America is still very affordable for Americans, because you live in the monthly payment, not the loan amount or purchase price. People's purchase price might be $100k higher than 3 years ago, yet because of low interests rates, the payment is the same if not lower. The monthly payment is what really impacts affordability. 

The higher priced homes in CA and other higher priced market pull the Median Price of homes up in America, and the media points to that as an indicator for the housing market, yet the majority of homes are bought below the median price since the Millionaire dollar homes are dragging the median price up and creating a poor metric for the strength of the current housing market.

And this is all very location specific as Joe and others have pointed out.

Hi @Mark Feaver, thanks for posting on BP! So is your goal to refinance your current triplex into a conventional loan to then be able to go and reuse your 3.5% down FHA loan on another 2-4 unit in Stockton? That would be your best avenue based on your liquid savings it sounds like. You'd need 15% down on a duplex purchase or 20% down on a 3-4 unit for a conventional loan. What is the primary reason you are not able to refinance into a conventional loan right now?

You would be able to utilize your Job A income, rental income, and Job C income if on 2 years of tax returns for your refinance and purchase to help with DTI. Please let me know if you have specific questions on this, I am glad to help answer questions as needed.

@Zackery Martinez do not waive appraisal or loan contingencies. Sellers think they have all the power in this market. It is ok for you to push back as sellers are getting greedy, especially in CA. Has your lender fully preapproved or pre-underwritten you? Or are you working with a big bank or CU that simply took your app and "prequalified" you? There is a HUGE difference based on who you work with.

@Steve Shaffer Forgot to tag you in my reply! @Michael Ablan @Adam Zach

West Coast (OR, WA, ID, AZ, UT, NM) portfolio loan 10% down, no MI on 1-4 unit. 90 LTV on purchase and Rate/Term refis. Interest rates 3.25%-3.50% with 1.75 - 2.5 pts typically. 30 year fixed with 15 yr balloon (which is an eternity compared to 3, 5, 7 year commercial balloons). Cash out up to 85 LTV and rates in the 3.75%-4% for 1-4 units on Cash out refis. I have used this in my own portfolio multiple times instead of putting 20-30% down and the properties still cash flow with the low downpayment due to the great interest rate. Works perfect to get in and capture all this great appreciation we are having on the West Coast. This is the best portfolio solution I have seen anywhere in my investing career. BP investors have loved it so far as well.