All Forum Posts by: Letxy Sosa

I subscribe to different news updates and today one caught my eye, the Guild Mortgage 1% down payment conventional loan. Link to the press release is below. I am in no way affiliated with Guild Mortgage, but I am curious to find out how it results, so if anyone checks it out please share your experience. 

https://www.guildmortgage.com/press-release/guild-mortgage-launches-innovative-1-loan-program-empowering-people-become-homeowners/

@Alexander Monnin are your reading the next one Cash Flow Quadrant? That one is my favorite.

Thanks for the feedback @Steve Vaughan

I have been listening to the bigger pockets podcast for a couple of months now and have heard more than one investor say they look for a 15% return on investment. I know the cap rate is the annual return on investment and ideally who would not want a 15% cap rate, however I am curious on how investors are computing this cap rate. For example are management fees paid to a management company included? Lets say I am looking at properties and I want to include that cost in my cap rate calculation what would be a good percentage to include to represent management fees per month? 6%? What is the most common? Should I even consider it? I know there are calculators, however management fees is something I would like to include and I just want an idea of what rate is the most common.

Mortgage underwriters look at a lot more than your credit score. First you should talk to any lender of your preference to get pre qualified, this will give you an idea on what your budget will be to buy.  I do recommend you talk to more than one lender.

I just read an article that relates somewhat to your question: http://www.housingwire.com/articles/40116-why-dont...

You need to be at an 80% loan to value ratio to be able to refinance into a conventional loan without a PMI. I recommend you put in extra money every month towards your principle and check to see where your property value and loan balance is in one year.

Check to see what the indemnity agreement says. I have handled document execution with POAs before and often times we are able to use a POA recorded in a different county or state to satisfy the title company. We have also requested a new POA and record it in the needed county, this of course takes time, but if there is someone actively working on it should be done pretty fast.

Florida has a lengthy foreclosure process for lenders and mortgage service companies because it is a judicial process, if the loan for the first mortgage is conventional, and the property is upside down the third party purchaser at the HOA sale should try offering a short payoff to the lender or mortgage service company. If the property condition is bad and the value is low it is likely they will consider taking a short payoff because it saves them money from having to go through the foreclosure process.

If the first mortgage has filed a foreclosure action it is best to reach out to the fcl attorney listed on the complaint to ask if they would take a short payoff because they have direct contact with the default department at the mortgage company.