All Forum Posts by: John Burke

Quote from @Jacky Fan:

would HELOAN increase my DTI?

Yes, but it will be offset with the rental income. If your DTI can handle taking your current loan from 3 - 7% +/- while increasing the loan amount, you shouldn't have any problems.

Quote from @Jacky Fan:

LTV is currently at 50%....My understanding I can refi up to 75%.

are you saying don't refi up to 75% if I don't need it?

Take out a HELOC or HELOAN & use the minimal amount you need for a down payment on your new primary residence. For example, As long as you qualify (debt ratio, credit score) you can take out a conventional loan with just 5% down. The HELOC/HELOAN will have the lower closing costs and you're not giving up your 3% rate. That should also keep you cash flowing as a rental.

Quote from @Calvin Peterson:

Hi,

I live in Fort Lauderdale. I am planning to buy a Single Family home by the end of the year and intend on "house hacking" (roommates). I want to put as little down as possible. I'm looking to find a lender who can work with me regarding an FHA loan so that I can, ideally, only put 3.5% down. I have a good credit score (but limited history). Please reach out!

Hi Calvin, I'd be happy to help. In addition to FHA, I have a conventional loan with the option to put as little as 3% down as well a speciality product that has lower rates if the property is in a designated area. You can Google my name VA loans and see my reviews on line.

Quote from @Ryan Ness:

Quote from @John Burke:

A 1 hour commute is not a problem but you may need to provide a letter of explanation. Occupancy fraud is the most common fraud committed in mortgage lending so underwriters look at things like distance from your job as a possible indicator. 

Did you claim the your rental income from your current duplex on your taxes? 

What type of property are you look for now, SFR or multi-unit?
I can lend in all 50 states and would be happy to help you figure out some options.

As it has now been 2 years since the property has been rented, I do claim the income on my taxes. 

I will be interested in multi-family, LTR opportunities that I can househack. If the cash flow of this property could get me beyond what is needed for my cost of living, my current W2 may not be a requirement, and I could make use of my Realtor's license in Indianapolis instead. I know the W2 may be needed for the approval, but I didn't know if there are other options if I needed to step away from the W2.

 IMHO in order to secure the best terms, you'll want to stick with W-2 for the purchase. Once you've had a chance to see how the property performs, you can revisit the idea of giving up your W-2 job.

A 1 hour commute is not a problem but you may need to provide a letter of explanation. Occupancy fraud is the most common fraud committed in mortgage lending so underwriters look at things like distance from your job as a possible indicator. 

Did you claim the your rental income from your current duplex on your taxes? 

What type of property are you look for now, SFR or multi-unit?
I can lend in all 50 states and would be happy to help you figure out some options.

Yes you can as long as your father will live in the home as his primary residence and you put enough down to cover your portion of the loan that VA will not guarantee.

Here are the VA guidelines for calculating the down payment.

VA calculates the guaranty as described in the table below.
Step Action
1 Divide the total loan amount by the number of borrowers.
2 Multiply the result by the number of veteran-borrowers who will be
using entitlement on the loan.
There is usually only one veteran borrower, in which case the result
of this Step is the same as the result of Step 1.
3 Calculate the maximum potential guaranty on the portion of the loan
arrived at in Step 2 (as if that portion was the total loan).
Use the maximum guaranty table in section 4 of chapter 3 of this
handbook.
4 VA will guarantee the lesser of:
• the maximum potential guaranty amount arrived at in Step 3, or
• the combined available entitlement of all veteran-borrowers.
5 VA makes a charge to the veteran-borrower’s available entitlement
in the amount of the guaranty.
If more than one veteran is involved, VA divides the entitlement
charge equally between them if possible. If only unequal entitlement
is available, unequal charges may be made with the written
agreement of the veterans.

Hey Troy,
No, since you'll be occupying the new home as your primary residence, you only need 5% down. Just a heads up, if you need to count the rental income from your departing residence to qualify, FHA will not be an option for your new home unless you move over 100 miles away.

Quote from @Ahsan Popal:

Ideal price point 450k give or take . 


Sacramento county , California 

Quote from @John Burke:

What's your price point for your new place? What state and county are you looking?

Google my name and va loan

Ok, Sacramento has loan limit of $766,550 so you're available entitlement is correct at $211,000. Here's the crazy thing, you could go up to 450K and you would only need $59,750 for a down payment. You could refi your current VA loan and switch it to conventional and restore your entitlement to buy a new home. This would offer you the lowest out of pocket cost. The other option would be to go conventional with 5% down. How far away from your current home are you looking to buy?

What's your price point for your new place? What state and county are you looking?

Google my name and va loan

Hi AP,

So you used all of your entitlement on your current VA loan? When did your purchase and what was the original loan amount? If VA doesn't work, I do have a DPA program that isn't income driven and you don't have to be a 1st home buyer.