All Forum Posts by: Jason Little

@Michael Fliderman  Just make sure to talk about the house you plan on occupying as your "Primary residence", not second home. They each represent specific classifications to your lender, with varying rates. 

But you are right, the order you purchase them in does not matter. Sounds like you have a good game plan to me. 

Don't hesitate to reach out if you have any specific questions about the differing loan programs!

@Jimbo Frank

Lenders will be much more willing to lend you more if you plan on living in the home for a year. As Zach alluded above, you can add value to the property during this period and take advantage of the best rates available. Then in 2 years when you plan to move out, you can certainly refi into a conventional mortgage, and if the property cash flows at that point it will benefit your DTI ratio when applying for another mortgage for the new primary.

@Rory Compton FNMA loan limit is 10. many lenders do have a 4 count overlay though, which basically equates to they are not geared toward RE investors. Just shop around and ask lenders specifically. 

Those are great questions to start @Toby Russell  Also make sure to ask for a fee sheet laying out any origination charges. But required reserves, down payment, and term length are where you will find the most overlays that you can compare while shopping. 

Goody luck to you.

@Ronny Gonzalez

All of the online quotes assume you have immaculate credit and mass reserves to make you the most qualified buyer of all time. Local lenders work with real people in real life situations. 

@Dominic Punzo  

There are significant benefits from making early payments on your mortgage. Any additional payments go directly to decreasing your principal balance, which jumps you ahead in your amortization schedule and can save you a boatload on interest. 

I would consider this a sound way to decrease their long term costs in order to save money. 

Some lenders do have prepayment penalties that could incur additional fees, but they usually expire after 2 years of regular payments, and they certainly are not universal. 

@Wendy Gomez  a judgement should not disqualify you from mortgage. Do you have a payment plan for the judgement or is it payed off in full?

@Andrew Leedom

You are allowed to finance up to TEN properties with residential mortgages before you need to create a LLC. As long as you are able to meet DTI and LTV standards. The more properties you have financed the more reserves you are required to have in order to qualify for another mortgage. But if a lender is telling you 4 is their max, that is an overlay.

@Nicholas Covington

Delayed financing creates a path that doesn't require the 6 months of seasoning. If you wait the 6 months then you can get a full cash back refi.  

If you want your money liquidated quickly I don't know of a better option in her situation. Sure she could get more if she waited to fit into alternate guidelines. Or go with private money and pay double the interest rate. 

At this point she gets over 100k back to invest, while keeping a minimal monthly payment on good terms thanks to the low LTV and not wasting half a year.

my quick calculation would give you a min. down payment of 3,082.

then around 7k in closing costs that you could finance into the loan.

Up Front Mortgage Insurance would be about 1.5k of that.