All Forum Posts by: Michael Cohen

on the new one to cover the difference between the sales price and conforming limit. So you'd have a 5% conventional for $477K and then a HELOC or 2nd for $98K

@Sam StoutThere are some 10% down JUMBO products. You can also do a 5% down conventional conforming up to the $477K loan limit and then a 2nd or HELOC to make up the difference in purchase price.

@Aaron Cayabyab - talk to your lender. Some people need to pay down credit cards in order to improve their credit score and/or DTI to increase their purchasing power. Others need the cash for closing costs so it's not worth it. Your situation is unique and deserves a specific-to-you answer.

Hi @Quinton Slay 

@Sung Park is right; you need to focus on getting the employment lined up first. Projected or hypothetical income is typically not considered as qualifying income unless:

1. In the same industry and/or job responsibilities as previous employment
2. Guaranteed and non-contingent contract in place
3. Set to being within 60 days of loan application

@Vincent Ngo - You do not have to be a first-time homebuyer to take advantage of an FHA loan. It will have to be your primary residence, however.

@Nicolaas W. - I commend you on your planning. You're right, most fellow service members do not have that much foresight.

You're not going to like this answer, unfortunately: GI Bill won't be considered qualifying income either. You might have to try a portfolio lender for a bit until you can refi out of it into a traditional mortgage program once your income is established.

@Stone G. - since you were approved for FHA, you must use the home as your primary residence. Renting out a room is called boarder income. You can do that, but the "income" you receive from these renters will not be considered qualifying income unless you have a two-year history of receiving income from boarders shown on the tax return and you are currently receiving boarder income. meaning if this is your first time/home, your income must cover the entire property.

@Nicolaas W. - that's actually a very difficult question to answer without any specifics.  Ultimately you must have 2 years of employment history, whether it's W2 or self-employed.  NOTE: college can often count as part of that history

A couple of issues:

1) Condo financing is very dependant on external factors, namely the condo association and/or management company. The condo has to be eligible for that specific loan type; meaning a condo has to be FHA approved to allow FHA buyers into the property. For a conventional loan, each individual lender must be approved to lend within that condo. Many condos are not eligible for either, so they're cash buyers only which drastically limits the pool of eligible buyers - and thus limits the value. That could be a good opportunity for a cash buyer (or PML/HML buyers) looking to rent, however, it makes the property extremely difficult to sell. That's why so many are for rent; the owners haven't been able to sell them.If there is a lot of competition (other open units someone is trying to rent out) then I would suggest you think twice about that property. Consider an SFH or MFH and a good property manager so you are not dealing with the headaches you mentioned.

2) As a new investor/LLC, your company would not be eligible for a traditional mortgage. The risk you're trying to mitigate is limited by proper insurance. Get good insurance and move forward in your personal names. One of the first few BP podcasts (first 10 or so; I can't recall) discussed this.

If you're working with a realtor, s/he can give you recommendations of someone they work with often. Otherwise, you're looking for a fairly straight forward investor loan, and bank or national lender can help you.