All Forum Posts by: Jason Little

@Chris Willson @Harjeet Bhatti

Boston area conforming loan limits are $598K. so you are not a jumbo

Taken straight from Freddie's guide book:     

4501.9: Borrower income and qualifying ratios for Home Possible® Mortgages (07/11/16) (a) Rental income from 1-unit Primary Residence Rental income from a 1-unit Primary Residence may be considered as stable monthly income (as defined in Section 5301.1) provided it meets the requirements in Section 5306.1 or the following: ■ Connection with Borrower. The person providing the rental income and the Borrower:  Have resided together for at least one year  Will continue residing together in the new residence, and  The person providing the rental income provides appropriate documentation to evidence residency with the Borrower (i.e., copy of a driver’s license, bill, bank statement, etc., that shows the address of that person to be the same as the Borrower’s address) ■ Rental payment. Rental income from the person residing in the Mortgaged Premises:  Has been paid to the Borrower for the past 12 months on a regular basis  Can be verified by the Borrower with evidence showing receipt of regular payments of rental income to the Borrower for the past 12 months (i.e., copies of cancelled checks)  Does not exceed 30% of total income used to qualify for the Mortgage ■ The Mortgage file must contain a written statement from the Borrower affirming:  The source of the rental income  The fact that the person providing the rental income has resided with the Borrower for the past year and intends to continue residing with the Borrower in the new residence for the foreseeable future

@Chris Willson, you are looking for a lender who is willing to consider "boarding" income. It is not as openly accepted as rental income from separate units. In fact it is extremely rare, but there is one product that actually allows for your specific situation. You need to ask your lender about a Freddie Mac Home Possible Mortgage. This is best known as a low-down payment option, as you can qualify with as little as 5% down. But less known about the product, is on a SFR you can use proven boarder income for up to 30% of your income needed to hit your qualified DTI ratio.

This is strict, and you must be able to prove at least 12 months living with said person (which you have) and continue living with the tenant (which you plan on).

PM me if you have further questions on this product. But I believe it is the one conventional product out there to fit your specific situation. 

As you alluded, you are eligible to hold up to 10 conventional mortgages in your name. Obviously, they can not all be primary residences, so yes you should be able to qualify for conventional financing still. As long as your DTI ratios meet the guidelines.

It changes from lender to lender, but i know my bank finances buy and hold investments up to 75 or 80 LTV (dependent on credit). And our latest were going out at around 5 and a quarter.
Keep shopping, you will find a lender who is suited to better fit your needs. 

You are very welcome. Good luck in your search, and feel free to PM with any additional questions.

@Hannah Woodward

A pre approval should only be considered as a guideline for a borrower to better understand their limits with conventional lending. You could get 2 or 3 to see who may be willing to lend you the most... but it is unofficial either way. If you get preapproved by one bank, you are in no way obligated to continue with that institution or loan program. 

Going through these pre approvals can be best for giving you feel of the different loan officers available to you. Having a guide through this process that you trust is the most important. 

You should not be afraid to shop numerous banks, as all mortgage related credit inquiries within a running 60 day period are counted as one hit on your credit. Don't let anyone scare you away from seeking out the best offer available. 

@Jason Muenchow As a realtor, the lender depends on you for referrals. And, as you said, he is not your friend as much as a business relationship. As a lender, I would never ask a client to take such a wide spread on rate to keep from hurting my feelings. I would simply warn you too look into the details on that loan, as rate is not the only factor you should be considering. 

It sounds like the second fella might have quoted you for an ARM, so just be sure you have all the facts before committing to anything.

You should be able to use that relationship with your original lender to double check the new financing and make sure you aren't getting screwed somehow on the back end. He should respect your openness and honesty and have no issue continuing to do business with you in the future. 

@Doug Christopher Most lenders only look to source money deposits of $5000 or more, so if 3 grand is all that's holding you back, and your father is willing to gift you that money, there should be no additional paperwork or holdup. If you wanted to work out private terms with your father, (since you make more than your tax return shows and can thus pay him back) you could fill out a simple gift form and take any money over 5 grand from him to put toward the house. Since he is a direct family member this is fully acceptable, the bank doesn't include that in your DTI. Which is fair, since they won't include your extra income either.

I don't know if this is an option for you, but it could help you finance the home you can afford.

One missed payment on a car loan is a very minimal problem. At worst your lender may ask you for letter of explanation asking you to give a brief reason for the abnormality. Your interest rate may be dependent on your credit score, depending on your loan program, so it may slightly effect your loan costs, but certainly shouldn't be enough to disqualify from financing. 

I would suggest inquiring at a respected local bank, along with a couple mortgage specific banks. Talk out your situating and find a loan officer that you feel comfortable with. Rates shouldn't fluctuate too much, mainly be on the lookout for extra fees or any upfront costs. 

And keep asking questions on BP and with your trusted circle to make sure your making the right decision!

@Daniel Levine You may be trying to take out just too much on the cash out. You are only allowed 70% LTV max on a cash-out refi for a multifamily (2-4) investment property. Your current numbers show ~71.5%, so you would need a higher appraisal or be willing to take a few less thousand.

The other important thing to remember is that investment property refi's are more risky to lenders, so qualifications are tougher. You will need very solid credit, and most likely 6 months reserves that could cover your primary and investment mortgage payments. 

If you meet those strict guidelines your loan would be backed by Fannie Mae, and should be easy to get a mortgage banker to originate. But the guidelines for this type of loan are extremely tight.