All Forum Posts by: Jeff Shumway

What costs in specific are you referring to? Many times the closing costs appear much higher than they actually are due to taxes and insurance being collected for escrows. If you are referring to the cost of the buydown, then yes the rates are higher/buydowns are more expensive for a cash out investment multi because it is viewed as more risk by lenders. And of course, limiting the number of investment properties in Fannie Mae's portfolio has driven the rates up as well. Is your lender charging different fees for different occupancy types on the property? Most lenders charge either a percentage based on the loan amount or a flat fee to cover processing and underwriting. 

For a conventional loan, the minimum down payment requirement is 10%. Fannie Mae does not have a specific number of days out of the year you must stay in the home. It would be absurd to Fannie Mae to dictate that you have to go on vacation a certain number of days every year. You must intend to use the home for your personal use at least some portion of the year. If you a purchasing a second home on a conventional loan, all lenders must make sure you meet these minimum requirements but some have additional requirements. 

As others have mentioned, you must qualify to support the mortgage payment for a second home plus your primary residence expense. You cannot count anticipated income from the second home to qualify because that would make it technically an investment property. 

I don't see why not.  It may depend on what your goals are long term and short term. In almost every case the interest rate on a mortgage will be far lower than an unsecured cash loan. 

Short answer is NO.  I have access to lender pricing and have not seen them this low.  Best conv rates as of July 9 are ranging in mid 2's.  Credit, debt to income, loan to value and geography can vary them slightly.

The answer is two!!!!  In property investing more "doors" means more security.  If one tenant dies or leaves you still have one property cash flowing while you work on filling the vacancy.  If you pour all of your money into one house you essentially have all your eggs in one basket.  It can be very stressful paying a mortgage on an empty property.

I don't know how "common" it is to find $873k but that is an amazing windfall.  Congratulations.  I would possibly consult with a tax attorney or seasoned financial pro.  I could forsee you running into problems with IRS or other federal agencies.  People who have a large amount of cash draw suspicion that the money could be from illegal proceeds or laundered in some way.  Real estate professionals and loan officers are trained to specifically avoid and report situations like this.  As far as the gun is concerned.  I would immediately call your local police and just tell them the truth.  If you want to mention the money it's up to you.  What if that gun was used in a crime, maybe even used in a homicide?  I would want the good karma of knowing I did the right thing by turning it in.  Police/FBI can trace the barrel markings with any slugs found at a crime scene to trace it back.  So long as you found it and are turning it in you would have nothing to worry about.  I was a police officer for 7 years and it was common for people to turn in old guns just to get them off the streets.

Hey Brian I see your looking for a friendly lender.  I am a licensed residential mortgage lender out of Tampa Florida.  I am an Air Force veteran love working with investors.  Based on your listed budget you should be able to find hundreds of properties that are move in ready or need little rehab. Feel free to message me so we can get in contact.  I'd love to find out more about your goals and aspirations to see which loan programs and terms will help you the most.  Best wishes!

Hey Eric congratulations on your sale! I am a licensed mortgage lender and Air Force veteran. I work out of Tampa which is one of the hottest markets in the country right now. Houston TX and Orlando FL area also safe bets however Orlando is a very service based economy and has been hit hard by COVID. Using the VA loan to purchase a multi-family is one of the most unused VA loan hacks. You can absolutely purchase up to a 4 unit multi family property with your VA benefit so long as you intend to occupy on of the units. I can assist you with getting financing and any questions you may have. Best wishes!

Hey James, great questions.  Of course the devil is in the details but depending on how much your current duplex has appreciated and how low rates are now, it may be a great idea to refinance the current property.  A refi allows you to free up cash by skipping 2 months payments when refi is complete and  lower your current mortgage as well.  I am a licensed mortgage loan officer located in Tampa Florida.  If you will be occupying the next duplex we would only require 15% down.    I love working with investors and can help you get approved for a refi or purchase in any of the 48 states.  Feel free to reach out to me, I would love to find out more about your specific goals and dreams to see what the best path forward is.

Hi Wendy,  I am a direct lender .  It is very smart to get a few different quotes before you sign.  Rates and fees vary greatly between lenders.  While many can speak in generalities, I would recommend getting a loan estimate from a licensed lender so you have the rates and terms locked in before proceeding forward.

I would love to help you out and get you an estimate and run some numbers to get you the best deal for your situation.  Please feel free to contact me to discuss.