All Forum Posts by: Katherine Blazer

@Aaron Heers I would try to have two plans.

So does it make sense as a flip? Then List it.
Can you rent it out? Talk to a DSCR lender and find out their terms to refinance rate and term or cash out. There are options for short and long-term rentals.

2 Votes

Hi @Nic S., I have a few additional questions. Is the current property you are selling held in an LLC? You will need to keep the name the same on the title. Most DSCR loans, they will need to be closed in an LLC, and you will be 20% down. There are regulations we have to follow when lending with less than 20% down.

0 Votes

Everything Paul said is correct. You will need to qualify for the mortgage PITI with your income. You cannot use any projected rental income to qualify for the loan. There are also radius requirements to how close it can be to your primary residence.

1 Vote

Hi @Josh Quesadilla, That second loan you are looking for will likely be a DSCR loan. These are designed for rental properties. There are also conventional investment loans that may be an option.

0 Votes

Absolutely! You can use 75% of income on rental properties the first year or 100% when you file taxes on the properties. I would suggest hiring an accountant that understands real estate and speaking to them about wanting to utilize a second home loan.

1 Vote

@David C. I personally love Famiglio & Associates - CPA Firm out of Sarasota. They also invest in real estate.

3 Votes

Tampa, Florida

Hi @Dyami Pike, Second home loans are a great option and tool. It sounds like you already have a lot of good info about them. A few additional items. You do need to qualify for the additional loan with your current income and DTI. YOu will not be able to use any of the projected rental income to qualify. You will also need to look in another town; they normally require at least 50 miles from your current residence.

1 Vote

Quote from @Kayla C.:

Quote from @Jessica Von Zastrow:

Hi Kayla - lender here!

You are able to include future rental income for an FHA loan, but the guidelines arounds this can get a bit tricky. Here's a few things to keep in mind:

FHA loans must be occupied as a primary residence. If you are planning to live in one unit of a multi-unit property, an FHA loan can be a great way to finance with a low down payment.
FHA guidelines require the lender to complete HUD form 92561 to determine "Self Sufficiency Rental Income Eligibility." This refers to the rental income produced by the property above the Principal, Interest, Taxes, and Insurance (PITI).
If you are buying a 3-4 unit property, you will need to have additional funds to meet the reserve requirement, which is typically 3 months of PITI. This requirement is in place to ensure that you have enough funds to cover any unexpected expenses or vacancies.

Hi Jessica!! Thank you for your reply. Are you familiar with forms other than the HUD 92561 form? I came across this article yesterday that states 2 different forms.

"You must supply:
An appraisal showing fair market rent. The appraiser must use Fannie Mae form 1025 or Freddie Mac form 72.
Leases, if available from current or future tenants.
The lender may use 75% of estimated rent per the appraisal or actual rents, whichever is lower; it can also use the amount reported on the operating income statement if one was completed."

When the lender orders the appraisal on a multi-unit property, they will order a 1007 addition, usually a couple of $100s more, depending on your market.

What are the lenders you are working with saying?

0 Votes

All Forum Posts by: Katherine Blazer

Katherine Blazer has started 67 posts and replied 322 times.

Post: Where to Apply for a FHA Loan?

Post: Does my commercial lender need to know about my private loan?

Post: Hard Money loan exit plans

Post: DSCR/Creative lender ideas

Post: Vacation home as a primary residence?

Post: Hard money lending refinance

Post: Second home mortgage

Post: Looking for CPA in TAMPA

Post: Second home mortgage

Post: Pre-Qualifying for a FHA Loan