All Forum Posts by: Jeff Shumway

You can absolutely finance off market deals with a conventional loan. So long as you qualify and the home meets the minimum property requirements, you shouldn't have any issue. 

Prequalifications are generally not worth the paper they are written on. Many prequalifications only use stated income and/or do not run credit. A Preapproval means a lender has reviewed your credit report, income documentation (last two years W2s/tax returns, most recent 30 days paystubs), and reviewed your asset statements to verify you qualify for a loan. 

It also definitely matters who you get your approval from. Most online lenders spend more money on advertising than hiring competent staff so realtors may be less likely to advise their clients to accept your offer if they have doubts about the financing. If you are earning more money, I would definitely recommend getting an updated preapproval letter to see if you will qualify for a larger loan. 

Of course. Life happens. You'll be fine. 

They are most likely asking for the HUD 1, which is the settlement statement.

Are you just looking to get into a property for the lowest down payment possible? Conventional actually offers a 3% down program. Both FHA and Conventional are typically 30 year fixed, although there are shorter terms and ARMS available as well.

Joe, I can't speak to any tax implications but keep in mind there are loan programs for your future rental properties that do not look at your income at all. It would only look at the income from the property so the amount you declare on your taxes would not have any bearing on your qualification. This only pertains to investment properties- if you wish to buy a primary residence on a conventional or government loan that will likely be a different story. 

The mortgage insurance is 1.75% of the loan amount due at closing. This is rolled into your loan amount, so it's not anything additional due at closing. Below is the chart showing how much in mortgage insurance you will pay, depending on down payment and loan term. 

Hey Fiona, I would recommend Mark Dowsett with Real Property Leaders. 

In a way, yes banks will consider your intention to house hack if you are buying a multifamily property. If you go to a lender for mortgage approval and tell them you intend to owner occupy a multifamily property, banks will usually be able to use the anticipated rental income to help you qualify for a higher monthly mortgage payment. Lenders will look at your credit score, debt to income ratio, and available assets for down payment/reserves when approving you for a home. 

Hey Nathaniel, definitely be wary of the online lenders. They spend all their money on online advertising instead of hiring people who are knowledgeable enough to qualify you for a mortgage loan. That being said, did you actually have your credit run for a full approval? I'm curious to know the reason for the 200K approval. Feel free to DM me if you want to discuss in more detail.