All Forum Posts by: Jay Voorhees

Hi Ada - I recommend Greg Kingsbury over at Vellum Mortgage. PM me if you'd like his contact information. I've referred a number of people over his way and have only heard great things! He's wonderful at walking you through everything. 

Property Taxes - and if you are purchasing this duplex at a much higher value than the property was previously assessed for, be sure to anticipate an higher future tax bill once the property is reassessed. 

Also - congrats! 

Hi Adrian - With 20% down, you could get a second DSCR loan. Otherwise, I agree with Sergey. You could use some of the available cash to pay off current debt (car loans, credit cards if these are applicable), but really you'd want a lender to run these numbers for you and tell you what to target.

If you're aiming for a conventional loan on this investment property, the lowest down payment allowed is 15%, and that's likely going to come at a cost in points, so I worry you wouldn't be retaining that much in the end. 

Primary Residence

1 Unit: 5% (exceptions to 3% down)

2 Units: 15%

3-4 Units: 20%

Second Home

1 Unit: 10%

2-4 Units: N/A

Investment Property

1 Unit: 15%

2-4 Units: 25%

With more down payment, your interest rate generally improves. Investment with 15% down will have some fairly high rates, likely at the cost of points. 

Since you've been in the business since 2017, you should be able to go either the conventional or the FHA route. It will really come down to your NET reported income on tax returns. Lending guidelines look at this net and are able to add back some write-offs. My team would be happy to take a look at everything if you are interested.

@Jason Ortiz - Very interesting. Neither appear to be adjustable and there are no pre payment penalties which is good news for you. 

This must be some type of unique financing since it sounds like your CLTV is 95%.

A quick word of caution, when you refinance, you will need 80% equity for a standard agency loan. With renovations it sounds like you will get here, but it's still good to cross-check all of your projections. 

Also depending on where you are in the Bay Area, make sure you understand if rent caps apply to your situation. 

Best of luck!

I've seen this as high as 3%. $15k does seem steep. If your contingencies are all in place, there should be no added risk to a higher deposit. Just make sure it is properly protected. 

Hi Erick - The lowest an agency loan can do is 15% down on investment, and it will require PMI. I have seem banks and brokers run different 'no PMI" programs at 15% down where they effectively price out lump sum PMI and cover it on your behalf, rather than have you make the monthly payment.

You may have been thinking of some type of creative DSCR financing, though the majority of these pulled out of the market back in May.

Best of luck finding and if you want to discuss your scenario in more detail, feel free to PM me. 

If you purchased the property last year, it may have also been a change in exemptions. In Texas, you have to be careful about homestead and other exemptions existing on the tax bill. If you're not living in the property and it previously had a homestead exemption, this would no longer apply. Lenders should catch this, but if it slips through, you can find yourself suddenly stuck with a higher payment than anticipated.  

I hope this helps and wish you the best in rebalancing cash flow. If you ever find yourself in need of a lender in Texas, feel free to PM me. 

Hi @Christopher Murphy - I am the owner and founder of a mortgage company in Texas. We specialize in 1-4 unit residences. I'll pm you, but would be happy to chat with your friend help get them pre-approved.