All Forum Posts by: Derek Brickley

Hey Tom! As mentioned above, the foreclosure wouldn't be an issue in itself. The work history would be the main reason for not getting an approval conventional. You could look at those NQM type loans like bank statement programs that only look at 12 months, but even those will have higher rates/fees than a conventional might. Just from what you've said here, you may want to explore a DSCR investment loan. This way, a lender won't be looking or asking any income questions, it would just come down to what income the property would bring in. Rates are higher than a conventional investment, but in some cases you may find these have lower fees since a DSCR lender isn't controlled by Fannie/Freddie loan level pricing adjustments.

Depending on your situation, PMI may be higher and you may have a slightly higher rate. One thing we have noted as troublesome for some potential househackers with this conventional program is that in order to use rental income from the other units towards qualifying you need to have some current housing expense verified (rent, a mortgage, etc.) Without that, you would need to qualify on your income by itself.

Nope!  It's a newer program, just announced back in December.  I purchased a 2-unit househack with the 5% conventional as soon as it came out.

Hey Natali!

Yes you can use either FHA or Conventional for 3.5% or 5% down respectively. FHA 3-4 units has a self-sufficiency test which can be difficult to pass in higher priced markets where the rent from the other units needs to be greater than or equal to your total housing payment. Benefit to the conventional option is that this does not apply. Hard to say right off the bat which is a better option since it depends a lot on what you are looking for and your situation but speaking with a lender that understands the application of primary residence loans in multifamily will be important to help you find the right option.

Hey Richard, DSCR value seasoning as mentioned can be slim to none but at that point the property value might be an issue. Do you have an ARV? If you've owned the property 12 months you shouldn't have any problem with value seasoning.

Any investment property is going to require a 15% down payment minimum and so no there won't be any way around that. If it is currently rented then you will need proof of a notice to vacate given to the current tenants. Sounds like you are trying to use a primary residence loan for an investment, so maybe it would be beneficial to look into 2-4 unit primary residences. FHA 3.5% down or conventional 5% down.

Just to make sure I understand, what are you planning to do with the property?  It sounds like this is an investment property, so what are you hoping to do here?

Similar to Brenna here, but it does largely depend.  Just a minute ago I quoted 7.75%, no points on an investment condo for an investor.  You will see negative hits to pricing with smaller loan amounts though so you may see a higher rate/fees for your situation.  For the majority of investors we are working with now though, we are not looking above mid 8's at the top of pricing.  Feel free to reach out if we might be able to help!

Hey Benjamin!  Do you have a purchase price in mind?  Those hefty fees as mentioned generally make 10% down near impossible in this rate environment, but there are certain brackets that might make it possible.