All Forum Posts by: Jinhee Hann

@Michael Rossi

WOW

I can’t even comment.

@Kel S

It’s so inexpensive to put one in and i can’t imagine not having one personally.

Whether it’s low income property that caters to a working class tenant or more middle class, i think it’s a good business decision.

@Franchell Bryant

Congrats!

Just briefly, looking back, here’s what I would have done.

Buy a 2-4 unit property as owner occupied with FHA using 3.5% down. Fha is the only way to buy a multi unit with such small down payment. And fha only applies to owner occupied so buy a multi unit first using fha. Because if you buy a single family home using fha first, convincing an underwriter that you're willing to love into a smaller multi unit building with 3 other units to live in after you've been living at a larger single family home is more difficult. Most likely they won't buy your claim that it will really be your primary residence.

So start with a fha multi unit property.

Conventional loans for multi unit will require from 15-25% down depending on occupancy and number of units.

Then, try to get conventional financing always over fha (unless you’re buying a multi unit with 3.5% down). Conventional loan can have minimum 5% down with lower monthly mortgage insurnace premium than fha so generally it’s always better than a fha loan. Fha mortgage insurance is for life whereas MI for conventional loan drops off when you have 20-25% equity in the house.

@Angel Gabriel Ramirez

Conventional residential lending gets more complicated when you’re trying to purchase in an LLc. Underwriters don’t like it. It automatically implies this is an investment property as well. Rates are higher for non owner occupied properties and downpayment requirement is higher as well.

You can always form an LLC and transfer the property into the LLC AFTER escrow closes.

Also if you plan to refinance the property later, most banks will require you to first take it out of the llc for 6 months before financing it again.

For jumbo or portfolio loans, some banks will let you waive the 6 month period but it is required you take it out of llc before they close the loan.

There ARe exceptions where major bank will let you stay in the llc but restrictions are tougher.

@Christina HennessyIs it difficult to obtain a transient license?

@Elin Trinh

You should use a National lender who can lend in all 50 states. Banks. Not local credit unions. What’s important is finding a realtor who’s super local. But lending is very general. Unless you’re purchasing a really unique property or a funky deal, use your trusted loan officer from a national bank who can lend anywhere. It’s really all the same.

@Edwin Revolorio

Don’t go the route with online lenders. It’s so difficult know if they’re any good. Trust me. Go with someone who is personally recommended by someone you trust. You must have your credit pulled and fully preapproved in order to know really truly what they qualify for. This is not the market to assume anything. You have to come prepared when you’re submitting an offer. Good luck!

@Kyle Smith

I think there’s a huge market for more cool hip cabins. Combo will be great.

I have a cabin for stvr and i designed it with people like me who are tired of grandma cabin decors that are so prevalent for so long.

But cool vintage is back so don’t make it too modern. Get ideas from Pinterest for cabin decor. It’s amazing.

@Drew Zaruba

Always try conventional before Fha since fha had higher mortgage insurance premiums monthly and it’s for life. Unless you refi out of it.

Conventional loans allow little as 3 or 5% down so it’s competitive with fha.

The real super advantage of fha is when you use it to purchase 2-4 unit property as owner occupied (fha only does primary residence so it’s best to do it as a first property), you can still do 3.5% down with fha whereas conventional will require 15-25% down for multi unit properties even for primary residence.

@Ryan Copeland

If it's a rental property that you also use as second home and doesn't reflect on your tax return as 365 day rental, you can go to PNC Bank. They will do it as a second home. Traditional refi and HELOC. There are some restrictions so check with a loan officer from pnc