All Forum Posts by: Hiro Kitagawa

@Brent Coombs I was informed by another loan officer that FHA loan cannot count rental properties as income source and therefore my debt would be too high to qualify for any useful loan amount. What's your take on that?

@Account Closed thanks, great to see nearby and outside team.

@Coleman Nelson great to see you as well.  If you're talking about REIAGC, I've been to a meeting.  I thought it was great and planned to go to it last night, but unfortunately my work schedule had changed.  If there are more, let me know!

@Carrianne Mucho thanks for the tip.  I was aware of the difference in down payment between owner occupied and investment, but looking back maybe I didn't explain to one of the LOs my intention (I intend to put low down and occupy).

Hey guys I'd like to know a bit on so called "renovation loan". Not the FHA 203K loan, but conventional. One loan officer noted only 5% down of the ARV is required, while another said she has never seen anything lower than 20% - 30% down of the ARV. Both of these were told before running a credit check so it's not that my finance affected the result.

How typical is it that figures this far apart would be presented for the same type of loan (30yr fixed conventional)?

@Roy N. I think my wordings were confusing.  You're right, I didn't mean the debt would go away but rather rental income could be considered.

@Chris Mason Thanks for the info on overlay!  I was most hung up on the fact that one MLO said 24 months rental history requirement is Fannie Mae requirement (implying that the national bank would also follow the same rule).  I read the link you sent - how correct is it to understand that a "fully executed" (signed?) lease agreement is sufficient to qualify partial-history rental as an income per Fannie Mae, as long as the particular lender deems acceptable? 

On a side note you should definitely work on that ninja star haha.

@Andrew Johnson so it really does sound like the rule is highly dependent on each lender.  

Hello BPers,

I just started renting my condo to a tenant at the beginning of April.  Upon speaking with two loan officers on conventional loan, I received quite contrasting answers.  My questions was if I'm getting rental income to offset the mortgage, if they would "omit" that debt and enable me to qualify for higher amount of loan.

National bank said:

Yes, if you provide (1) signed lease agreement, (2) security deposit and (3) first month rent, then we can negate your rental property debt (mortgage) and qualify you to a higher loan.  As you provided them, you can go shop now.

Community bank said:

Yes but only if you have held the property for 24 months or more.  Otherwise we will have to count the rental property mortgage as full debt.  This is Fannie Mae regulation so it would be true for all banks selling the loan to them.  

What are you all's understanding on this?

@Kathy Argento @Tom Ott @Ozzy Smith thanks and nice meeting you all!  I get surprised how big the real estate family is in the area.....

@Jason Weible thank you! What's made you choose Cincy as your business area?

@Account Closed I appreciate the welcome. It is one of my goals to go with the flow of the great things. 

@Kendra B. the same hope goes to you!  I'm looking at Covington/New Port/Prospect Hill/Hyde Park area, mainly because they are well known.  What area is your multifamily in, and the areas you're targeting to invest?