All Forum Posts by: Derek Brickley

Hey Nolan,

Was there something specific you were looking for?  Really would need to know more about you and your situation to see if we could even help in the first place.

Hey Caroline!

Everyone has already hit the nail on the head. VA is a great opportunity for starting your journey. A quick tip: the VA loan in itself is a specific niche but so is real estate investing. Finding a team that has helped people looking for a VA househack and understands both is going to be so important for your househack, but further down the line as well.

Hey Jared! As already mentioned, trying to refinance into a investment loan might not be the most beneficial. Other than wanting to buy another property, you would need a concrete reason for not living in the property for one year. In addition, the cost to cash-out refinance an investment property at 80 LTV probably would be beyond ATR/QM limits. Unfortunately, a cash-out refinance as an investment industry-wide would not be at 85 LTV. When using primary residence loans, you are sadly restricted with how quickly you would be able to scale.

My initial thoughts: What type of property would you be looking to buy as a primary residence?  If you have a justifiable reason for buying a new primary, then it may be possible.  I would not recommend refinancing that 4-unit at all.  As I mentioned before, the cost to do so would be extreme and your interest rate would be higher.  You don't need to refinance out of the primary residence loan to buy another primary, but the other seasoning applies.

Hey Ryan!

The exact LTV and terms definitely would vary based on the details of the scenario, but that shouldn't be a problem. How much are you looking to pull out and what are market rents?

Hey Thomas,

Is this a Fannie Mae "Homepath" property? Actually these can be great opportunities. Conventional financing is generally speaking still available. Not all that different from an on-market MLS listing in reality.

Hi Pandu,

Were you looking for a "DSCR" type HELOC or a conventional HELOC? Short answer is yes a HELOC is possible on an investment. Feel free to reach out if you have any specific questions though.

Hey Gladys!

For investment financing, there are really two options from a traditional loan perspective. Either conventional investment or debt-service coverage ratio. Your rate on conventional may be slightly lower than DSCR, but there will be heavy points due to the loan-level pricing adjustments. DSCR can have a bit more flexibility as well, minimum 15% down compared to conventional 20% needed (but you will find your terms will be significant better on both options putting 25% down). DSCR also does not look at your income i.e. taxes, W-2, paystubs, etc but rather will look at the potential cashflow of the property. It will definitely be important to find a team (lender, realtor, property manager, etc.) that will be able to help.

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!