All Forum Posts by: Derek Brickley

Is the single family home and the duplex on the same parcel ID? Would you be able to argue that it is a duplex with an ADU? Are you looking to finance the rehab as well or just finance the purchase?

Might be some options but will depend on a number of details here.  Feel free to reach out though if it might be helpful for you to go through some of those!

Hey Summer!

I'm currently househacking and I used the conventional loan with 5% down. As long as this 4plex would be in a high-cost area then conventional would still be a possibility for you. You don't need to worry about "self-sufficiency" which can be very difficult with FHA at that purchase price.

Are the other units rented long-term with leases in place? Short-term rentals?  You can potentially use 75% of the long-term rents to help qualify.  Easiest way to look at this generically would be:

Proposed mortgage payments + any other monthly payment you have

Your monthly income + 75%*long-term rents

This always needs to be less than 50%, and of course other factors would influence your ability to qualify but this hopefully will give you a way to guesstimate the feasibility.  Feel free to reach out with any questions you might have on that!

Definitely agree! A VA IRRRL is a great benefit for veterans, just make sure to sort through the lenders that you speak with. Make sure they are someone qualified to help for this!

Hey Billy,

I know there have been a lot of responses, but I haven't read them all haha. If you have funds to buy cash, that would let you negotiate more and get a lower price. You could then use a DSCR loan as a form of delayed financing and pull up to 80% back out (depending). This could be a rinse and repeat method for you if that is what you are looking for.

Otherwise, a DSCR purchase is always possible. Note that DSCR generally has a minimum loan amount depending on situation and if you qualify for conventional loans, there would be community lending incentives (even as an investment property) for some of those areas in Indiana.

Depends on where you're located!  We have certain partners in some states for that.

Hard to say for sure! It seems fair, but definitely comes down to the debt-service coverage ratio, FICO, price, etc.  In Ohio, we have seen conventional rates on investments significantly lower with certain community lending incentives.  Not sure if that applies to this home or not.

For a primary home compared to an investment, you would see a pretty significant difference in rates.

Yep as already said! 5% conventional is definitely possible for another primary or 3.5% with FHA. Now it has to make sense for why you would be moving. For example, it might be difficult if you have a 3000 sqft home now and want to buy a 800 sqft home and move into it. It just needs to make sense and you are all set!

Hi Anna!

Generally with foreign nationals, if there is little to no credit history there are ways to use alternative tradelines. Seems like a pretty standard situation there. Especially if you have a US address and there is a US LLC, but either way an investor loan (Debt-Service) would be typical depending on a bit more details. Where are you looking to invest? Are you looking for rehabs or turn key? What price range would you be looking for?

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.