All Forum Posts by: Derek Brickley

Hey Mario, 

If your dad fully understood and was okay with the reverse mortgage that could be an option, however that would exceed my risk tolerance.  As Bill mentioned, you could potentially be a coborrower for him on a cash out refinance to increase his buying power.

Hey Jack!

Like Terrence mentioned, if it will be your primary residence then you can take advantage of the low downpayment options and better pricing. I'm a little confused, are you looking for a 2-4 unit or a single family rental (SFR)? For 2-4 unit househacks, you would have a minimum 3.5% or 5% downpayment for FHA and conventional respectively. Typically, down payment assistance is not available on multifamily properties above 2 units. If you are looking for a duplex, then we would be able to use assistance to help you cover the 3.5% downpayment. One benefit to FHA though, is the large seller concession limit. You can negotiate to have the seller cover up to 6% of the purchase price in your closing costs. Depending on your situation, this is almost for certain what we would recommend looking at first. When using the downpayment assistance, yes it sounds great that you can buy a duplex with $0 down, but your interest rate and fees will be significantly higher. When using the seller concessions, there is no impact to your rates and the seller pays for your closing costs. If you have any specific questions, feel free to reach out.

Hey Timothy, would the HELOC be in your name? And are you on title? Not sure if we could help without knowing a bit more about the situation, feel free to reach out!

Hey Andrea!  Short answer is yes you can, but there would definitely be occupancy concerns that might be difficult to overcome.  You would need solid proof and reason for moving to Cincinnati.  Otherwise, I absolutely think that's a great idea.  Just going to be some hurdles to jump through.

Hi Kevin!

I would agree with the other Derek here that high leverage especially on your primary could have some extra layers of risk. With it being on your primary residence, there isn't really a way to get around DTI requirements. However, depending on your situation there are other ways to possibly raise your income by using bank statements if you were self-employed etc.

Hey Shivani!

Just as others have mentioned, a Debt-Service Coverage Ratio (DSCR) would allow you to potentially get an investment property without dealing with the income verification. You would instead qualify based on the rental income of the property. Minimum down payment ranges from 15-25% depending on the lender. Have you been looking at any properties in particular?

When using a debt-service loan, there is no value seasoning at least with one of our investors.  We go on current appraised value, not costs.

Hey Matthew, is there a reason you wouldn't be looking for delayed financing? I have not had luck finding someone cash out less than 6 months otherwise; sometimes 12.

Hey Helena! Have not heard of them before. DSCR is definitely a niche in itself, so finding an investor friendly lender that is familiar with the program/business is going to be a huge incentive. Hear them out and ask a lot of questions, just do your due diligence

Hey Mohammad!

Doug is spot on with the fact that it really does depend. Will you be using a vacating residence lease or just the lease from the other unit(s)? For rental properties in general maybe looking at (debt+proposed PITI)/(wages+(75%*rent-current PITI)) might be the formula that would be more accurate. Note that this is only if 75%*rent>PITI. If 75%*rent is less than PITI then that difference would be added to the top portion of the DTI calc.

For a situation of moving from one househack to another, there really are some strict rules for vacating residence but you can't use it as income even if 75%*rent > PITI. The best it can do is wash out your current payments from the DTI calc. For the unit you are vacating, you will need a one year lease signed ahead of time as well.