All Forum Posts by: Katherine Blazer

Hi @Joshua Austin, On primary residence, you can use 75% of the projected rental income on additional units. So if you are looking at a duplex, you can use 75% of the second unit's income to offset the mortgage. If it's a triplex, then the second 2 units and quadplex the additional 3 units. It's a primary residence, so you will need to occupy one of them. This is true of Convention and FHA loans.

When you move into DSCR loans, you are looking at 20% or more down, and you can use all of the projected income to qualify however it will need to cover its expenses, so principal, interest, taxes, insurance, and HOA or property management fees it may have. Your rate and downpayment will depend on your credit score and the additional income the property will produce after the above expenses are taken care of.

Chabelin, Is the property for a primary residence for yourself or an investment property?

@Derrick S. and @Daniel Paloscio I had to be there barrow of bad news... Amber is no longer with Tiago. she got married a few months ago and now works in commercial. Her sister Mollie is awesome and at Boss Law another St Pete closing agent and attorney.  

Are you buying the property below market value currently? If yes how much below. You can rate and term refinances in most cases without any seasoning. They will make you out at 75%-80% LTV depending on the lender. If not, then you will need to wait until you have paid it down.

If you want to pull cash out of the property you will need to season the property for 6 months to a year and will max out at 75%LTV

I agree with all of Andrew's points. 

Some additional reasons with Investor loans would be that the projected property value was inaccurate or the projected rental income was off, and the property does not support it. 

I have personally had a few properties that cashflow when the investment loans interest rate was 4.5%, but it did not work when they hit 6%, and they are now higher. 

I think you are thinking of conventional second home loans. That is where you would need to be at least 50 miles from your primary residence. They have lower down payments than an investment property loan, but not as low as a primary residence loan can go. You also must use the property for a certain number of days each year. 

So you should do your cash-out refi first if you have not already. You then should start looking at properties. For flip or bridge loans they are going to qualify the property not really the borrower. For the most part, DSCR or rental loans will be the same thing. Its all about can we justify and prove that you will make money on the property.

Nope. So most of the groups I work with require 20% down on single-family 1-4 units for a purchase or rate and term refi, 75% for a cash-out refi. 

You have a lot of options. We work with a handful of banks and shop all of them so the client is able to get the best rate and terms for their goals.