All Forum Posts by: Julie Smith

Im working on a 1031 exchange and planning on buying two houses with it.  My issue is that I am currently at 10 house loans with Fannie Mae, but selling this house will drop me down to 9, so I should have room for another golden ticket mortgage spot.

Now I want to buy two houses and tactically it would be advantageous for me to use a DSCR Loan for the first house because its an existing property, and the the second house its a new construction tract home that will only take conventional financing.

Under Fannie/Freddie rules would lender view the DSCR as "Loan Number 10", and I wouldn't be able to get a Fannie Mae conventional mortgage? OR...

Does the DSCR not count at all in the calculation and I can get the conventional loan afterwords.

Hi everyone and thanks for all the help online in previous posts.

My husband and I are both reaching our 10 Fannie Mae Loan limits and will likely be out of these "golden ticket" loans by the end of the year.  I was wondering what other options that I had to continue purchasing properties.  I've heard about blanket, portfolio and other types of loans but I've really don't know what my next step is.

Does debt get prohibitively expensive now?  Is the game over for a small fish?  Where should I look?

Thanks,
Julie

Hi everyone,

Hubby is in the process of getting a conventional loan for a single family investment property. Put 25% down and tons of reserves (over 100k). He has also owned and managed multiple properties for several years. My issue is that he's getting burnt on my DTI because they are counting the full mortgage against the DTI, even though the property is going to rented immediately after it closes. So there is a negative -700 monthly mortgage of a place that will be rented that is being added to the debt. Yikes!

Correct me if I'm wrong here, but Fannie Mae B3-3.1-08 says that the lender needs to calculate the monthly income for qualifying purposes. There is no lease. Single Family Comparable Rent Schedule Form 1007, I believe?

Isn't calculation Market Rent x .75 - PITIA = Projected Rental Income (which should add positively to the income)

So I checked the appraisal and saw that they didn't do a Form 1007 or have anything listed regarding rental income.

What should he do here? Request they send the appraiser back out?

Hi everyone,

Hubby is in the process of getting a conventional loan for a single family investment property. Put 25% down and tons of reserves (over 100k). He has also owned and managed multiple properties for several years. My issue is that he's getting burnt on my DTI because they are counting the full mortgage against the DTI, even though the property is going to rented immediately after it closes. So there is a negative -700 monthly mortgage of a place that will be rented that is being added to the debt. Yikes!

Correct me if I'm wrong here, but Fannie Mae B3-3.1-08 says that the lender needs to calculate the monthly income for qualifying purposes.  There is no lease.  Single Family Comparable Rent Schedule Form 1007, I believe?  

Isn't calculation Market Rent x .75 - PITIA = Projected Rental Income (which should add positively to the income) 

So I checked the appraisal and saw that they didn't do a Form 1007 or have anything listed regarding rental income.

What should he do here?  Request they send the appraiser back out?  

Interesting thread.  Im currently looking at purchasing my first house in cash.  I have $150,000 in my personal account, and my mom has $25,000 in her personal bank account.  I am wanting to make an all cash offer of $170,000 on a property next week.  I have bought several properties before using conventional financing and usually a transfer of $25,000 would have to season in my account for 2 months.

Is this requirement still in effect for cash offer buying.  Would my mom be able to wire me $25,000 today so I can get a proof of funds letter tomorrow and buy that house in cash?

I'm in Bakersfield, and have several properties here.  Its pretty hard to find a property to buy that cash flows.  Inventory is flying off the market at prices not seen since the crash.  You probably can make money, but it would be hard work in some rough areas that I don't want to invest in, and even there prices are pretty high.

I just cash out refinanced my house, and would immediately like to use the funds to purchase a property.  Do lenders require those funds to meld for 2 months, or because its exceptionally obvious where they came from I don't need them to season.

The new properties we are intending to purchase with the 1031 exchange would be 4 new construction single family tract homes for rental purposes (they would easily be completed within the 6 month window and many are half completed when purchased). Would that be good with the exchange?

My husband and I have been buying rental properties for several years now and are getting close to reaching our limit of ten each.  We buy 1 solely in my name and 1 solely in his.  When we started this venture about 8 years ago we purchased two properties in both of our names (we didnt understand the Fanny-Freddie rules yet).  Those two properties values have risen over 125,000 each and we would like to sell them both and purchase 4 properties with the money in a 1031 exchange.  

Our issue here is we are both on the title of the houses, which would be only 2 open mortgage slots.  We would like to sell both houses and then buy 2 in my name and 2 in my husbands name.  Is this possible with a 1031, do I need a quit claim or refinance before doing this?  Any advice would be helpful.

Thanks,
Julie

About 2 weeks in, and closing November 10th.  We've already had the appraisal and inspection completed, we went through initial processing.  The company said they are sending it to a second underwriter and we will know within 3 days if we can continue the loan.The a company we haven't used before but they are big name, and they said we could have 10 mortgages.

Is this a bonehead first underwriter and we will get luckier with the second guy?   Could it be a COVID restriction?