All Forum Posts by: Derek Brickley

Hey Naveen, unwarrantable condos are pretty standard non-QM.  For something like that, there would be a few broker outlets we might recommend, depending on a bit more of the buyer's situation.

Hey Butch,

As you said, unfortunately one of those sides would need to be vacant for you to do it as a primary.  You could use a debt-service coverage ratio (investor cashflow) loan to get around the income needed, but would require that downpayment minimum still.

Hey Yolanda!  Depending on your situation, you could do a conventional cash-out refinance on the rental.   Otherwise, you could potentially do a Debt-Service Coverage Ratio purchase or refinance to get the necessary funds which would be a cashflow based lending option for investments.  It would depend the rentals you have and/or the property you might be looking for.

Hey Rob,

Definitely sorry to hear that happened to you. At a purchase price of $84,900, I haven't heard of any lenders who will do that small of a loan amount. Minimum for us is 75k and you would most definitely be in the high 8's to low 9's at a higher LTV.

85 LTV is possible when the loan amount is above 150k and other criteria are met, and getting a 7.5% rate at that LTV would not be possible even with significant prepayment penalties.

Wish we had some better news for you, but if the deal still works with who you're with then they might be your only option. If you find someone who can help, let us know I'd be happy to connect with them myself!

 A guarantee huh?

 Ah understood, I would ask them to show you other options.  TN doesn't have the same restrictions some other states do so they should be able to provide you with a couple options at least.

I believe River is talking about a cash-out refinance on your investment property. We don't offer HELOCs on investment property because of the risk, rates would be well above 10% if not higher. DSCR rates (investor cashflow loans) would give you a fixed rate payment and allow you to pull that cash out from the rental at a lower cost.

Hey Mario, it is near impossible to say without some more context.  Estimated value, credit, type of property?  An investor we are working with now was looking at high 6's for a cashout refinance, but his home is in a community lending area for discounted rates.  

Hey Gabe,

The closing costs are fair, but was there a reason you might be considering a 5 year prepayment?  It seems like most people we've been working with in a similar situation take a 3 year prepayment penalty or less.  You will see less of a benefit to extending that penalty beyond that, and if rates drop before then you would be forced to pay that penalty to get a lower rate.  Otherwise, I'd say it is fairly decent.

Hey Paige!

If this is a true investment property, you would typically need a 15% down payment minimum anyway.  What other option were you considering?