All Forum Posts by: Jeff Dulla

Sorry, @Kyle Cuppy for above. 

Agreed. Are you going about this with conventional financing or what are you thinking? Actually if it is $470,000, you could do a jumbo with 5% down. Curious as to what route you were thinking. 

@Tiffany S. Exactly. I don't mean you should do anything different. Call the professional referenced above. I just don't want anyone falsely thinking it is an exception and a reason that maybe someone could charge you more for doing that type of refinance. 

@Tiffany S. Is there an actual exception you need made? Just to clarify, delayed financing is not an exception. It is an actually Fannie Mae guideline. So do not think you need a special lender to do that. 

@Kyle Cuppy @Evan Thomas As Evan is saying Kyle, I guess I am not understanding how you are increasing the room count that much with just $30,000. That is the cost of an addition?

Could you simply buy the place straight up, use a conventional loan, very little down, move into the place, do some minor changes and after six to twelve months, accumulate the income needed to pay for your rehab?

@Account Closed That is true. But it's also situational based. Find a mortgage bank in your area. They will be able to put the loan with a plethora of banks. Many of them will be Freddie oriented. The banker can run what is called LP, up front. It is a socially automated underwriting and will tell you right then whether or not Freddie will take one year for you.

Hi Ryan,

No, you do not have to use the same bank.  As @Christopher Blanco mentioned, most banks have a set period they have to hold on to the loan, if the loan is paid off before then, they are typically hit with a penalty know as an Early Payoff (EPO).  I would ask your lender if they have a seasoning requirement or if there is a pre-payment penalty for you. Most of the banks I work with have a seasoning period of 6 months.  

If may work in your favor to go with the same lender, as they may be willingly to work with you on the rate, and they will have all of your information on file to help expedite the process.  Of course, do your due diligence, you want to make sure you do what works best for you financially.  

Hi David,

With a career change, usually you will need to have earned income in the new field in order for it to be used to qualify.  Even though you have an excellent history of employment, for qualifying purposes, they are going to review your current earnings.  

Typically, changing over to real estate, unless you are going to be a salaried employee, you will be considered "self-employed".  As you will likely receive a 1099 for your commission earnings, and normally that is filed on a separate schedule.  

You may run into some issues qualifying because of the recent change, but you would need to have your complete file reviewed to be sure.  There are options to qualify using your assets as income.  But that is not a program offered by all banks.  Once you know how your new income will be structured, attached are the general self-employed guidelines for Fannie Mae.  Again, if your new position will be salaried (W2), you shouldn't fall into this category.

@Andrew Briones I guess I am confused as to whether or not you are saying the 10% down structure is the hard money structure? Obviously this site has really emphasized the importance of keeping capital. If the difference is 10% until you ultimately cash out after rehabbing and the cost/rate is as described above, I would choose the structure above. 

@Mike Dymski Haha, sorry about that. I was still in a haze chasing my 1.5 year old around. It is true, men cannot properly multitask. 

I took away something from all of your responses and do appreciate the knowledge.