All Forum Posts by: Hyeseong Park

@Hyeseong Park Keep in mind that if you refinance...you have to pay all of those closing costs again! So, the rate decrease would need to be significant for it to be worth it.

What does I have to pay all of those closing costs again mean? Don't they get included in the total amount that I will borrow at the closing?

Also does any of you know if I need to show my bankstatement for DSCR loan application? As I bought the property and rehabbed with my whole cash, I don't have any mortgage on my property so want to know if I don't have to show my bankstatement.

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Quote from @Andrew Postell:

@Hyeseong Park Keep in mind that if you refinance...you have to pay all of those closing costs again! So, the rate decrease would need to be significant for it to be worth it.

What does I have to pay all of those closing costs again mean? Don't they get included in the total amount that I will borrow at the closing?

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What is the best option for prepayment penalty you think these days if I want to go with DSCR loans?

I assume that there is a big chance that the rate can drop a bit more due to elections at the end of next year so govern may decrease the interest rate. which means I should probably go with no PPP and do refinancing next year? what do you think the trend will be?

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Quote from @Nate Herndon:

Removing the PPP will be costly on rate, upfront points, or both. I'm still utilizing programs that allow for 3-year and 5-year prepays in PA. This helps the interest rate considerably,

Thanks for your detailed info, Caroline!

So in short, lenders have to provide "no ppp option" for PA customers to provide "ppp option". Is that correct? If the lenders dont have "no ppp option", they cannot give any ppp option then? Just to clarify if I understood this.

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I saw some lenders in PA still do DSCR loans with PPP. And as my property is in PA, I want to hold & rent it with DSCR. Anyone can prove if that ppp banning is true for PA? If so, can I get sources to check?

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Quote from @Erik Estrada:

How many properties do you currently own?

If the property does appraise for over $140k,

You may be able to finance 75% LTV, which would put you right at the minimum loan amount. DSCR does not require any personal income statements to qualify. As long as the property appraises for $140k, and the market rents are $1200, you will qualify.

It takes at least 21 business days to close this loan. The appraisal fee is the only upfront fee. Everything else is paid at closing

i OWN 1 for now. Okay thanks for the info. I DMed you about requesting a quote.

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I don't have great income to prove and the house has been seasoned for only 6 months so I feel like I should go with DSCR. could anyone help me if I can get a DSCR loan for this? If so, how long does it usually take to close? And I also want to know usually if the upfront fee is only appraisal fee for this case. What is my debt to income on this?

here is my scenario.

-Purchase Price: $59,000 (but I flipped this house after buying it so now it can be worth between 140~150k based on my realtor) . It is in PA.

-Rehab price: $25,000

-Market Rent: $1,200

-Property Taxes: $1,324

-Annual Insurance premium: $1,200

-HOA fees: N/A

-Number of units: 1 single-family house

-Estimated Credit Score: 690-700

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Quote from @Logan Singleton:

Hello,

Based on the information provided, it does appear you would be able to cash out refinance and receive funds, but it is very uncommon for a lender to charge no points for any investment type of mortgage. You can request the lender to pay closing costs out of loan proceeds, but you will have to pay for the appraisal upfront via your funds.

150k @ 75% LTV = 112.5k
Existing Debt = 84k
Estimated Closing Costs = 3k
Estimated Cash Proceeds = 25.5k (this can be used to calculate your reserves)

Okay. But doesn't the balance matter as I have less than $10,000 (honestly less than $5,000 I have in my bank acc lol)? Or do lenders usually check more market rent than balance if I have tenant?

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Quote from @Brittany Minocchi:

If you've only owned the property for just under 6 months, you'd need to go with a non-conventional type of loan unless you want to wait until the 12 month mark to use the new appraised value. Many of those lenders will allow you to use your cash out proceeds to satisfy the requirement for reserves. If you use a debt service loan, you may be cutting it close with the market rents of $1,200 and stated monthly taxes/insurance. It will depend on the rate and LTV you qualify for.

I can't guarantee anything based on the limited info provided, but I have quoted plenty of scenarios that did not require discount points for this type of loan. Happy to answer any other questions, feel free to connect.

yeah fortunately, next month is the 6month so I will just go with normal cash out refi. As under 6 months brings too high fee. Would you be able to DM me?

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Need Cash Out Refi Loan Estimate (LE) without points. But for refi, I don't have a good balance in my bank account. Should I have at least $10,000 to do?

The scenario is this below and it will be owned for 6 months when it is the end of this December.

Here is the scenario. And I want to know if I must have at least some kind of money in my bank to close deals.

-Purchase Price: $59,000 (but I flipped this house after buying it so now it can be worth between 150~160k based on my realtor) . It is in PA.
-Rehab price: $25,000
-Market Rent: $1,200
-Property Taxes: $1,324
-Annual Insurance premium: $1,200
-HOA fees: N/A
-Number of units: 1 single-family house
-Estimated Credit Score: 690-700

I will not hold this house for over 5~10 yrs so need the best option for me.

Thank you!

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All Forum Posts by: Hyeseong Park

Hyeseong Park has started 22 posts and replied 64 times.

Post: No prepayment penalty vs 3 yrs vs 5 yrs for current market

Post: No prepayment penalty vs 3 yrs vs 5 yrs for current market

Post: No prepayment penalty vs 3 yrs vs 5 yrs for current market

Post: Is it true that PPP is banned in PA for DSCR loan currently?

Post: Is it true that PPP is banned in PA for DSCR loan currently?

Post: Am I able to get a DSCR Loan?

Post: Am I able to get a DSCR Loan?

Post: Need cash out refi but don't have a good balance in bank acc, what should I do?

Post: Need cash out refi but don't have a good balance in bank acc, what should I do?

Post: Need cash out refi but don't have a good balance in bank acc, what should I do?