All Forum Posts by: Derek Brickley

Yep!!  Not every market but we are seeing a lot of the same.

Hey Maria!

Not fluent in down payment assistance in the state of Virginia, but I want to agree with above and say 3.99% right now is hard to believe from any type of lender. Other than private money lending or some creative finance, I would be weary of anyone promoting that as an interest rate. VA loans are generally the best rates and we are seeing those in the 6's. Are they getting a temporary buydown?

If she's not on title or anything, then she wouldn't need to sign.  Joint property in Florida is only on a primary residence.  Reviewing the divorce decree might say more though.  If she isn't on a loan, but IS on title then a quit claim deed would remove her.  

Hey Eric! Totally agree with Devin. DSCR is a great way to scale since we don't look at any income documentation, you qualify based on the property itself. However you would need significantly more cash compared to a primary residence house hack. Depending on your situation, you might not need to wait 2-years on your current job though. For DSCR, the best terms are generally with 25% down but househacking you could get in with as little as 3.5% or 5% depending on your situation and program.

Just contributing here! Same thing as everyone else has said. 75 LTV is pretty standard across the board. In most cases going to 80 LTV will have a significant jump in rates and fees, so you may end up paying 2 extra points just to get an extra 5% out so it might not make sense.

Quote from @Derek Brickley:

Quote from @Derek Brickley:

Quote from @Shuvrajit Mukherjee:

I aim to find a fixer upper quad/triplex in Chicago area, renovate and house hack, then cash-out in 6-9 months.
But when financing my other rehab or cash-out projects, I have seen the lender requires the property to be non owner occupied. 

How can I finance the rehab? And if I go for conventional lenders, and pay for rehab out of pocket, what's the usual seasoning period to cash-out?

Hi Shuvrajit!  There are renovation loans for primary residence.  The FHA version is the 203k and the conventional is HomeStyle.  Both would allow you to finance the repairs into the loan amount as either an FHA or conventional mortgage.  From a seasoning perspective for refinancing if you did the renovations in cash I would say 6 months would be sufficient from acquisition.  

 Also important to note though is that if you acquire it with a traditional first mortgage, seasoning is going to be one year.

In order to get around the 12 month period you would need to have justifiably done renovations that significantly increase value I.e. not just light cosmetic

Quote from @Derek Brickley:

Quote from @Shuvrajit Mukherjee:

I aim to find a fixer upper quad/triplex in Chicago area, renovate and house hack, then cash-out in 6-9 months.
But when financing my other rehab or cash-out projects, I have seen the lender requires the property to be non owner occupied. 

How can I finance the rehab? And if I go for conventional lenders, and pay for rehab out of pocket, what's the usual seasoning period to cash-out?

Hi Shuvrajit!  There are renovation loans for primary residence.  The FHA version is the 203k and the conventional is HomeStyle.  Both would allow you to finance the repairs into the loan amount as either an FHA or conventional mortgage.  From a seasoning perspective for refinancing if you did the renovations in cash I would say 6 months would be sufficient from acquisition.  

 Also important to note though is that if you acquire it with a traditional first mortgage, seasoning is going to be one year.

Quote from @Shuvrajit Mukherjee:

I aim to find a fixer upper quad/triplex in Chicago area, renovate and house hack, then cash-out in 6-9 months.
But when financing my other rehab or cash-out projects, I have seen the lender requires the property to be non owner occupied. 

How can I finance the rehab? And if I go for conventional lenders, and pay for rehab out of pocket, what's the usual seasoning period to cash-out?

Hi Shuvrajit!  There are renovation loans for primary residence.  The FHA version is the 203k and the conventional is HomeStyle.  Both would allow you to finance the repairs into the loan amount as either an FHA or conventional mortgage.  From a seasoning perspective for refinancing if you did the renovations in cash I would say 6 months would be sufficient from acquisition.  

Check your findings and advise if your UW clears that once you can get A/E on the 18th.  

In terms of MI companies yes everyone is different but that pricing is just something we are seeing as a trend before the official date, expect this to change.  As of now we (as an industry) can’t accurately price or run finding yet only use our best available information.  However I’ve already communicated with our UW team and directors on specifics for my own loan in process.  

Quote from @Brittany Minocchi:

Quote from @Dawn MacMillan:

Live in Kingman Az . Looking to sell my property & use for a new investment for primary. Will be starting an Assisted Living Group Home . I've spoke with one lender & she said I couldn't buy as an LLC .
if I could get some more feed back it would greatly be appreciated! 
Cheers , 

Dawn 

Your wording is a bit confusing - are you planning to use the funds from the sale of your property to buy an investment property or a home you’ll occupy? 

Yes not quite sure what you are looking for! If you are looking for an investment property for the assisted living, you may want to consider a business purpose DSCR. As a primary there are multiple options and it's hard to say which might work for your situation.