All Forum Posts by: Jeff Shumway

Hey Yvette, remember the words "low interest rate" is all relative. For example, a low interest rate on a conventional non owner occupied 4plex cash out refinance will be far different than a low interest rate on an owner occupied single family home purchase. Both rates may be low in their own regard. The rate is relative to the loan type, your credit score, property type (i.e. condos or manufactured homes will always have a higher interest rate) number of financed properties, loan to value, and debt to income ratio (if you are buying on a conventional loan - there are non-conventional loan programs out there with rates higher than conventional loans).

If you can clarify some of these details, perhaps we can help you get a better idea if the rate you were quoted is low or not. 

Just saw this a day too late! Let me know when the next one will be held. 

As with any big conglomerate online lender, they spend a lot of money on their online advertising and reviews to make sure their reputation looks super clean. Many companies finance this by charging slightly more on the interest rate and/or closing costs. I don't know that they spend resources to their processes/staff to make sure you loan closes smoothly and on time. 

You could buy the ugliest, most outdated house on the block and FHA would not care, so long as there is no chipped paint, missing handrails on stairs, holes in the roof/walls, etc. The house just needs to pass basic safety standards.

FHA does have a seasoning period- you must make 6 months of on time payments before you can do a cash out refinance on the property. Although, after 6 months I would suggest refinancing into a conventional loan if it all possible so you can drop the mortgage insurance. You will need to be at around 75%-80% loan to value in order to do the cash out refinance, depending on the loan program.

Hi Ryan, I was in the air force as well and now I work in lending. Would be happy to answer any questions you have on using your VA loan.

Conventional loans for 5% down on a multi are no longer available unfortunately. Freddie Mac is coming out with something that has a lower down payment requirements but it has strict income requirements and it rather tough to qualify for. 

Ladd you could purchase it on either a conventional or FHA loan (or VA if you are military!). The conventional down payment requirement is around 20-25% and the FHA down payment requirement is 3.5%.

This is definitely an additional requirement from your lender. Fannie and Freddie are still doing 15% down single family investment properties. 

That is definitely not the case. You can certainly refinance a home you do not occupy as your primary residence. 

So long as you plan to use the condo for your personal use at least some portion of the year, you can buy it as a second home with 10% down. There is no specific distance requirement from your primary residence but it must pass the smell test. 

15% down is the minimum required down payment for an investment property. The key difference is that you would not intend to use the investment property for any personal/vacation use. It would be intended solely to generate income and you could use the potential rental income to qualify.