All Forum Posts by: Jonathan Taylor

@David Lamb first off, congrats on the net worth and income. Secondly, to keep your low first position rate, there are closed ended second position loans for you to tap into your equity. these loans are fixed terms, usually 20-30 years, at higher rates than your first but when you calculate the blended rate, the combination of first and second rates, are usually lower than a full refinance. No need for DTI, no income verification, just need to make sure the property debt covers with the first and second mortgages.

@Tomas Nuno there are issues with this strategy. Loan rates for owner occupy are lower than investment rates. When you sign for a loan, there will be an owner occupy requirement and you will sign stating you will live in the property. If you rent it out from day 1, you are committing mortgage fraud, which is serious offense and you do not want to go down that road. If you are legitimately going to live in the property, then house hacking is a great strategy, just do not violate the loan documents. It won't end well. 

@Anthony Williams I have had success with certain area codes for a lender that offers no LLPAs on 10-15% down for lower FICOs (sub 680) but we still need to calculate DTI. Pricing is competitive and has been able to include more borrowers but no ratio loans on a primary.... That I haven't seen in some time.

@Moises R. I own a portfolio of properties in Saint Louis so I know that market well. I have lenders with lower amounts and would be happy to run the scenario but at 130k value, you have plenty of options. 

@Eric Cross I don't see an issue with the info you provided for a portfolio refinance. The average per unit value is just around 50k which my portfolio lenders would be able to make work. The only part of your post that may be hard to accomodate is no pre pay penalty. There are pre pay buy downs (lowering the standard pre pay by a few years with a cost or rate adjustment) but otherwise you sound like an ideal client. 

Happy to help. Dm'd you my contact. 

@Beth Crosby this isnt an issue for a DSCR cash out product vesting under your current LLC but leasing the unit to a company you own rent the property will be an issue with most lenders. Why wouldn't you be able to rent to a long term tenant? What you use the cash out for, as long as it is for business purposes, is fine. 

@Robin Simon show me a scenario that prices at 5.99%. The five year is hovering at mid 4.42% today. SOFR is 5.41% as of May 14th. I'm getting a decent amount of clients emailing saying Easy street is the lowest out there but I don't see who is buying your paper at these rates. Most LTR DSCR is trading in the 7s on the secondary. If I am wrong, please show the math but I don't see how this rate is feasible in this market and is misleading to consumers.

@Dan Guenther to add to your deal, there are loan that lend specifically on STR income that this property location can qualify for. Something to keep in mind when you are looking for stabilized loan options for the long term.

@Tyler Rabanus your analysis was in the right mindset (covert the garage, renovate to add value), just this property was not working. Keep at it. You'll get there. 

@Dawne Morris Do you have any other assets aside from this house and is this your primary residence? You are in a tough spot but the advice on selling is an option. the other is to see if you can refinance at 60% LTV to pay off this loan into a longer term option but you would be paying the higher interest due to your credit.

Speak with a bankruptcy attorney before you make any large moves. @Andrew Postell is right, you have a bit of time before the note balloons on this house.