All Forum Posts by: Jason Little

@Sheila Reyes

Freddie Mac product with 5% down is a great option for you with a higher credit score compared to FHA.

The biggest restriction for these loans is income limit... which is typically higher here in New York than other places, but I won't make assumptions. You can search specific limits on Freddie Mac's website directly with an address. 

You do pay PMI on this loan, but it will drop off eventually unlike FHA. So you don't have to worry about a refi down the line.

Also, as previously mentioned these loans have a better perception with sellers compared to FHA.

Hey Ray, I think you may be looking for a bridge or rehab loan. These loans are usually structured as 1 year term, interest only payments, with a higher rate. The major point being that you have an out planned before the year is up. Whether that be flipping the property, or having it in condition to refinance with conventional lending. 

The monthly payments are low, but the upfront costs and refi costs will set you back more than that FHA loan for sure, but will be much less of a rigorous process to get approved, and could get you to closing much faster.

I have no clue about specific lenders operating in WV, but a quick google search should find you a few options to look into.

Good luck!

Hopefully you supplied your lender with accurate information about your employment, which makes it simple to look up the appropriate personnel to talk to and do a quick verbal confirmation before close. It is usually a very quick phone call. It is simply to ensure nothing has changed since your application. 

That is why we only use 75% of the appraised rental income, to account for vacancies and other expenses. 

Lender should be able to use 75% of the appraised rental income for the non-occupied units. That value should be coming from a post-rehab perspective, since that's when you would first be renting them out. 

@Cheryl Stevens you said the Florida residence would not be a rental? Just a second home? If you have cash reserves for a 20-25% down payment you could still easily get a great rate on that property with little hassle. Not quite as low as a 50% LTV cash out refi on your primary, but still more competitive than i would expect you to find on the rental.

Refinancing your primary is nice since you can use a local lender and speak face-to-face, where as the other transactions would be long distance.. 

Welcome @Igor A.  Long Island's South shore presents some great investment opportunities, it certainly takes creativity and perseverance to find the best deals in this crowded market, but us young guns can still make our mark here. Good luck to you my friend and never be afraid to reach out for assistance!

A mortgage loan originator! who is simply a loan expert, working for a lending institution. I would suggest talking to a few different people at credit unions, community banks, and maybe one big box bank. Get a feel for who can offer the products/ advice you need on a regular basis. Pick out your favorite personality out of the bunch and start building a relationship that you can lean on for your business for years to come. 

Get more estimates @Jackie F.  Avoid anyone charging points for origination, you should be able to find a lender offering a flat rate origination (usually around $1k) add that to around $500-$600 for appraisal/ credit check/ flood cert.   I don't see how you should be above 1% on a good refi deal, unless you have liens or judgements against the property. 

@Jim Stevenson Gift money is not acceptable for an investment property down payment. Why don't you just use your own funds for the down payment, and work out an arrangement with your friend to cover the rehab expenses. Just switching the order makes this possible.