All Forum Posts by: Derek Brickley

Hey Jalen! Not sure if these would work but a couple of options. The best option in your case is probably a DSCR loan with 15% down. This way you wouldn't need to provide paystubs, W-2s, tax returns etc. You would qualify based on the potential rent of the property. Note that this is extremely hard to do with BRRRR deals since the rental amount you qualify for is for the property as-is and you would not be able to finance any repairs. Maybe not exactly what you were looking for, but maybe a way to get you into a property regardless.

Hey Ann!  Seems rather straightforward there, but would need some more information to see if we could possibly help.  Feel free to reach out if that might be useful!

Yep love it!  Frustrating is an understatement with some of the buyers that don't have someone to help them understand how to get their offers accepted.  That full loan approval has been crucial, and everyone will call it something different (TBD Approval, fast pass, etc.) but having a fully approved loan (credit, income, assets, liabilities) means you are just needing an appraisal and title work (if you don't get an appraisal waiver).  Either way, that means closing in 7-10 calendar days.  Compete with Cash!

Hey Jimmy, 

Not sure exactly the situation, but do you already have the appraisal back? Short term rental DSCR 20% down is common, but would be curious what came back in the market data

Hey Erin!

Similar to what others have said, it is definitely a possibility as a first-time homebuyer.  We would need to verify primary residence payment history (so if you're renting we would get that). 

Brittany is 100% right. "Par" pricing would be your interest rate without paying points, however in today's market with a conventional investment loan we aren't seeing par pricing. Now you may be able to find options with less points, but the only way you may be able to avoid those is by going with a DSCR option. These will have a higher rate, but since it isn't under the same guidelines as conventional you may find par (or closer to par) pricing on that. If possible, conventional might still be the best route but it would depend on your goals!

Hey Michelle,

A couple notes on that...
1. First I understand what they are referring to, but it sounds like they may not understand the dynamics of investment properties and this specific kind of financing. When it comes to investment properties you will have higher rates/fees than a primary residence regardless whether that is conventional or DSCR. In that realm of mortgages, there is a restriction on pricing being compliant, and that is typically 3 points in total that can be charged to a buyer. However right now even the highest rates we can offer you for an investment are still carrying points. However with an investment specifically you could charge 4 points and be alright compliantly depending on the other fees since there are other factors at play.

2. I'm not sure where they might have been looking but 4 points seems a bit high based on what you just mentioned above.  I want to make clear when I say for this I am estimating $200,000 price, 20% down and a 740 Credit Score but we would be looking at 3 points right now with that.  There may be community lending programs available depending on the location of the property as well.  I'm not sure where that broker may have been looking, but I'd encourage you to make sure they understand the dynamics of investment financing and some of those incentives.  If it might help to look at those as possible options, feel free to reach out

If you're looking at a conventional 5% down, that would probably be a fair quote. As far as FHA 3.5% down 7.75% seems high. If it might help to look at options, feel free to reach out

Hey Benjamin, not sure exactly what you're looking for since there isn't a ton of context.  Feel free to reach out if you might be looking for options.

Hey Brian! Do you have a mortgage on your current home? Reason I ask is you can only have one FHA mortgage at a time. Generally there are very few grants/down payment assistance options for those who are buying multifamily homes. I'm not familiar with what Cambridge might offer, but finding something without MI would only be small/local banks or credit unions like that with some portfolio product. The only down payment assistance for a duplex would be with an FHA loan. At that point, we can cover the 3.5% down payment for 100% financing. That would not work for a 3-4 unit home though.