All Forum Posts by: Jeff Dulla

@Brent Coombs I could be wrong but i specially stated that is the case for Fannie/Freddie without the use of homeready or homepossible. Both which require an income limit or for the home to be in a certain census tract. FHA allows 3.5% down on any home you intend to occupy with limitations on a number of criteria.

Long story short, if you read my original post, I only comment on Fannie/Freddie. Not FHA.

@Brent Coombs there are about three different things in my response and based on the ambiguity of your question and remark about rubbish, i don’t have the slightest idea which part you are talking about.

@Erik E. @John Russell For the most part, that is correct. There are non-prime lenders that will do less. But if you are going the traditional Fannie/Freddie route, that is the case. If the property is in the right area or if your income is below the median income level for that area, you could use Freddie Home Possible which will allow you to do 5% down. 

Here is the tool to check addresses of properties you are seeing: http://www.freddiemac.com/homepossible/eligibility...

Hopefully this helps. 

@Kristen Ray  - if you are talking about Fannie/Freddie loans, you cannot receive a gift from anyone for an investment property. You could probably get around this by seasoning the money in your account for more than 60 days but not saying you should. 

Again, speaking from Fannie/Freddie perspective, no, they will not lend to an LLC. You would have to title it in your name first and move it after (not saying you should do that). Typically a bank is going to treat the LLC as it should - as a business, and you will offered commercial lending terms.

Lastly, again from Fannie/Freddie - an unsecured line would not work as an acceptable down payment source. 

Even for most loans a residential mortgage bank, retail bank, broker are going to offer, all of the above will be a problem. I cannot speak for Non-prime, private money, hard money, but with residential mortgages you are fighting an uphill battle. 

@Caleb Childs Very common question these days. You can get cash out but not beyond the original purchase price really (called delayed financing). I want to hear more about it being NOO but your fiance moving in, etc.

To get more than the purchase price out, we would need to wait six month or explore some non-prime options. 

@Caleb Childs I wouldn’t use a bank. I would use a mortgage banker or broker. They will shop rates. Shop products. Guidelines will differ from bank to bank. That’s your best bet for getting a solid deal and the most out of your cash out.

There are many reputable ones in the area. 

Feel free to PM me if you want any more info.

@Jefferson Smith This is a single family, condo or 2 - 4 unit residential home and you are only being offered commercial products?

Unless there is a major piece of information I am missing, you should be able to get whatever conforming, fannie/freddie loan product on this - 15 Year Fixed, 30 Year Fixed, etc. 

@Sean Youngberg I think that response is a load of BS. Fannie/Freddie offer programs for primary, second home and investment routinely. That’s part of every day business. I do Loans for investment properties monthly. Through Fannie/Freddie.

It sounds like they want to steer you commercial. My guess is that it's a short term ARM/balloon? Something fixed for 1 to 3 years and you have to redo down the road correct?

@Sean Youngberg The issue is that people, especially on here, generalize with terms like portfolio and don't fully understand what that means. Like portfolio is a magic term for doing anything Fannie/Freddie doesn't. Most portfolio loans that I know/use, mimic many of the underwriting guidelines that Fannie/Freddie follow. To a T. The lack of ability to sell a loan takes away a great deal of risk mitigation. So I wouldn't assume that they automatically go to a higher loan to value. 

Almost every portfolio  lender I know of will have the same guides unless you are going with a commercial loan or Non-Prime loan. And you would certainly know that because the loan structure and rates would be much different. 

I know many would not want to touch their primary residence but it comes down to cost of debt. If you have 10% you can tap in to (like you said above), maybe you cash out (depending on your current rate) or get a HELOC. That will help you get your loan to value down to 70% on the investment and should open many more avenues for you. A solid lender could do both in one fell swoop.

@Sean Youngberg If you purchased the home more than six months ago, I don't think seasoning is the issue. My guess is that on SFH, investment, cash out, Fannie/Freddie caps you at 75% loan to value. 70% on a MFH. So the LTV is probably an issue.

Do you have a decent equity position in your current home or any other properties?