All Forum Posts by: Matthew Kwan

Yes there are products that can up to 80% LTV for DSCR with 6 months reserves. Typically rates are 0.5%-1% higher than the full conventional loan, however the beauty is that it requires less documents and quicker close.

You can proceed with a cash out or rate and term refi up to 65-75% LTV depending what product and terms you choose. The appraiser will need to come out and evaluate the new 4plex that you have and making sure you have the income to qualify for that new appraised value at 65-75% LTV and then you proceed with the cashout / rate term refinance.

HI Jewell,
If you were to use FHA again, this could trigger the FHA 100 mile rule + 1.75% upfront fee, however with a few exemptions Indeed FHA allows you to put 3.5% down payment to invest in 1-4 units. However if you plan on buying 3-4units, there is a trigger rule for FHA, it is called the self sufficiency test. In order to past this SS test, your appraised market gross rental income at 75% has to be more/equal to your monthly mortgage payment (PITIA). These are something to be considered. Sometimes the smoothest way to acquire your 2nd house hack, the conventional route could be the best.

Well it will need to be life changing events like having kids, new job, divorce, taking care family members etc but the rule of thumb is to live there for at least one year then being able to rent it out and converting it into an investment property. However, if you do plan on getting a HELOC, you might also want to get a line before moving out since rates are lower and CLTV is a lot higher for primary helocs! Just a thought...

It's just hard to prove that the tenant caused the issue, since as time passes the drain tends to accumulates as well. However, if it clogs again within 1-2 months then I believe it would be fair to charge the tenant.

You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions. Many buyers/investors are using this strategy to invest in real estate.

- get into real estate with a lower rate and lesser percentage down payment.

-house hack or rent out your vacant units out to lower your monthly mortgage payment.

-repeat the process every year by acquiring one house every year with the appropriate income qualification

HI Vince, as long as you are vacating your current primary home and moving into a new primary that is acceptable, but just make sure you obtain a 12 month lease in order to use the rental income to offset your mortgage payment and not getting hit twice for your current mortgage and new mortgage. Also, if the triple is a legal multifamily, you will be able to use the other 2 vacant units at gross rent of 75% to lower your monthly mtg payment.

 It can be usable for both if you were vacating the units and there was a 12 month lease agreement. However, if you filed your rental income under schedule E, then lenders will have to use your the rental calc based on how you filed your schedule E. There are also some exceptions to convince the underwriters to use leases if there were major repairs for that house/unit proving that the schedule E numbers are not showing the full potential return, then you would be able to use the leases as an exception. 

Yes they are wrong. Borrowers can acquire a primary residence from up to 1-4 units for as low as 5% with conventional, as the regulation was approved last year of November 2023. You can also explore FHA with 3.5% down as well with 1.75% Upfront fee + anything with more than 3-4 units, there will be a SS rule (Self-sufficient test) to pass per FHA guideline.

If it is a legal multifamily unit, you can also use those vacant units as your rental income up to 75% of gross market rent.

HI Guenevere,

You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions. Many buyers/investors are using this strategy to invest in real estate.

- get into real estate with a lower rate and lesser percentage down payment.

-house hack or rent out your vacant units out to lower your monthly mortgage payment.

-repeat the process every year by acquiring one house every year with the appropriate income qualification