All Forum Posts by: Jose Luis G.

Hi,

The lender I'm working with suggested that we submit information for DU in order to see abililty for Fannie to underwrite. I was wondering, in case the application is deemed ineligible, will that stay on on your record when a loan officer from Fannie reviews your file in a future mortgage? 

Thanks

Hi,

I am considering applying for a mortgage loan but have a high outstanding balance in private student loans that have been in default since 2015. The loans currently only report to one of the three credit bureau's so I have a 590, 720 and 750 credit score for all 3. 

I am currently negotiating a settlement with the creditor but I'm curious to know how the mortgage lender will account for these defaulted loans and whether they would approve me for a first home financing. More specifically, whether the fact that they are defaulted is going to prevent me from getting a mortgage given that from a DTI assuming a 1-2% payment of outstanding balance periodically still leaves me well placed from a DTI perspective. The interest rate on the loans are about 6% so I wouldn't want to rehabilitate the loan if the oustanding balance is going to be counted at its full nominal as opposed to the 1-2% assumption which is more favorable given my good income and credit.

Thank you

Thanks. What is the process of converting it to rental? Is there any formal steps you need to take. It seems you just keep the original first home loan so wondering what it takes to do that. Also for taxing purposes. 

Hi, I was wondering what happens after 1 year when you have a first home mortgage on your property and you want to convert to a rental property. Do you need to refinance the first home loan and take out a new loan for investment property or do you just keep the original first home loan given that you've satisfied the 1 year living requirement? 

Also, can you claim back the depreciation from your first home 1 year when you convert to a rental or will you lose the depreciation benefit for that year? 

It looks like buying as investment property for someone willing to put 20% down makes more sense given that the depreciation benefit is more than the difference in interest rate but trying to see if I'm missing something