All Forum Posts by: Michael Dunn

All of the wiring is incased in conduit and is attached to the wall with brackets and screws.
I am just hoping that it will pass Inspection / code.

The way it currently is, is up to code, so hopefully there won't be an issue

I am going to purchase the property as an Owner Occupant, with the intent to hold on to it as a rental property.

As far as getting it approved for a FHA loan, I am going to use the 203k rehab loan, and get it all as one loan.

It needs quite a bit of work done.
My main thing is it passing an Inspection, with if my facts are correct.....

1. You HAV to get a Inspection ?

2. The house has to be in " Liveable " conditions , before you can close on the house,
Unless the seller is willing to work something out, I.E. put the amount of money needed to get it to pass the FHA's liveable guidelines, by putting the money in an Escrow account ?

 
Thank you again for all of the help,
I really appreciate it

Good Morning,

I need some insight and recommendations as to a situation that has come up, ina  property I am looking to purchase, that has Exposed wiring , all throughout the house.

The house was built around 1955 , and it is all wood on the inside ( almost like a Log cabin on the interior walls ), in that there is no sheetrock anywhere in the house.

Well, all of the wiring that goes to the.... light switches, Outlets and ceiling fans, are all " Exposed " and are tacked to the wall with staples.

Here is my main question please..... I am going to have to purchase this property using a FHA loan, and am afraid that once I get the Appraisal and Inspection, that they will not Pass this property due to the wiring.

There is no way to " Hide " the wires either, since there is nothing to run them behind, I.E. sheetrock .

Has anyone ran into this sort of problem , and is there a possibility that I may be fine, and that it will pass for an FHA loan ?

Thanks for every ones help,

I really appreciate it

Hi BP community,

could someone please confirm if the following information is correct for the 2015 FHA DTI ratio(s)......

I see on the website that it mentions 31/43 being the highest DTI for anyone with a credit score under 620

But I have also read in the past, that with a credit score above 660 or maybe it was 680, that you can get a DTI as high as 35/50 or 35/53 I believe ?

Just trying to make sure that I have my facts correct

Thanks so much

Thank you for all of the response

So, if I used the Down Payment assistance, with the intention of living in the property, but wished to keep the property Long term, and rent it throughout the years ( after the 1 year O.O. ) is meet, would this be allowable under the Down Payment guidelines ?

Good afternoon,

I am sitting here, browsing the internet for current 2015 on the max DTI on an FHA load, while at the same time deciding if getting an unsecured loan will halt my plans on purchasing my first property

Here are the current numbers ( any help will be greatly appreciated )....

Monthly average Gross = $1,700

credit score = 680

Total monthly Debts = $200

House Payment I'm looking at from the purchase of the property = $500 ( this includes PITI )

The monthly minimum for the unsecured load will be right around $150 a month

So with my current monthly debt minimum of $200 + $150 ( new monthly minimum debt form the un-secured loan ) = $350

Using a DTI of 35/50..... .35 x $1700 = $600 .50 x $1700 = $850

Given this DTI, I'd be right at the Max on the 50% side of $850 , if I take on this new loan

my questions are...

1. is a 35/50 DTI on a FHA even likely to get ?

2. If I could get a lesser loan, and thus reduce the minimum to $100 a month, would this for sure help, in the eyes of the Lender especially ?

3. And if I hope to purchase the property within 3 months from now, but I take on this new Loan NOW , will this hurt me with getting approved for the loan on the property , via the way the Lender is going to look at it ?

Thanks again for any and all help , I really do appreciate it

Hi Chris, sorry for the confusion.

I am going to purchase this property as an O.O. and live in it for the required 1 year

But after that, and my main intention, is to hold on to it and keep it as a Rental. It being a Rental as the long term goal

Given that it will be purchased as an O.O. and that I could use the down payment $ I have set aside, for other things right now.

If I qualify and get approved for the Down Payment assistance, would it be wise to use it and what would you say are the Pros and Cons to using it?

It is for the state of Mississippi if that helps at all

Thanks again, I really appreciate all of the help - Michael

Good evening,

I am in the process of getting a contractor and purchasing my first rental,

and I am trying to decide if I should use the Down Payment assistance program for my state Mississippi

And what are the pros and the cons of using it vs not using it?

I'm on a bit of a time crunch, in that I have to decide soon, on whether to use the assistance or to pass on it

Quick side note,.... I really could use the extra money I'd save from not having to use my own money for the down payment

And this will be an FHA loan , with the closing and pre-paids all rolled into the loan ( I have already discussed this with the seller )

Thanks for any input and help - Michael

Need some clarification on the numbers I got back , when using software to evaluate a potential Rehab/Rental property I am looking at

I have attached a screenshot showing all of the numbers for the Purchase of the property

My questions , please are....

1. Is the 80% Refi. at 80% ARV mandatory ? Meaning, on every purchase of a property, once the Rehab is complete, do you Always have to do a Refi. ?

2. The total all in cost at the end of the Rehab shows $60,000

which is the price at which I want to stay at. But after the Refi. at 80% of LTV, my equity drops from $20,000 down to $16,000 AND my interest rate goes from 5.3% at time of purchase to 6.5% after the Ref.

I guess my question is, is do I have to do a Refi. ?

Thanks for the help and insight, I just want t make sure that I fully understand the way in which the numbers work, before I purchase the property.

I was hoping to have $20,000 in equity at the end of the rehab, but the numbers are showing that it will actually be $16,000

It won't stop me from pursuing the property, I was just unaware of having to do a Refi. I guess it's mandatory ?

Thanks much

Here's the link to the Rehab Evaluation/numbers ...

https://sites.google.com/site/prospectus/welcome

Could someone who has any knowledge regarding the way in which a states Down Payment Assistance programs work.....

I am wondering particularly about Mississippi's down Payment assistance program, and what determines if someone will get approved and qualify /

Does it mainly come down to Income level, credit score, single or married , etc.. ?

I really appreciate the help,Thanks much

Good evening, 

I was if someone could please confirm some information that I heard, regarding this years FHA DTI.

I was told that you can get as high as a 40/50 - 40/55 ,depending on your credit score and a few other factors

Just heard this a few days ago and it made me question and wonder if it was accurate, as I believe last year, it was around 35/43 on the higher end.

Thanks for the insight and help