All Forum Posts by: Mike Singer

FHA allows you to do a 3.5% down product on a 1-4 unit property. You need to live in 1 of the units to use the financing option.

No, they can't require it due just because you move out unless it's a reverse mortgage. They could potentially freeze the line so you can't make withdraws but they won't call it due. You should be good to go. 

You'll probably refi that loan later this year with rates expected to go down. I'd take the par rate and save the equity. Buy it down when rates aren't so high and you plan to be in the loan long term.

Most LO's at Rocket have been in the biz for a short amount of time. They're great for vanilla refi's but I wouldn't risk an investment deal you found with Rocket. If something goes haywire you're just a #. Work with a mortgage broker that understands your goals. 

That seems somewhat odd. I've worked at lenders that do quick checks to make sure you aren't on any government watchlists. The only disqualifier was any fraud involving finances. I wouldn't worry too much about it if you dont have anything to hide in regard to past financial fraud. 

If it's not owner occupied that will be your only option. There's alot of good NonQM loans out there. You can look at it as a short term loan until you qualify for Fannie/Freddie products. 

Fannie and Freddie just made the wait time 12 months. As @Mark Munson said their are other options, but the terms are probably not as a attractive as the tranditional conventional loans. 

Unfortunately that wouldn't make a difference. They can tell what the plan is with the property based on location. You're not going to vacation 15 minutes from your primary home. Your best bet is to live in the new property, but you're going to have to have an explanation of why you want to move into it. There's alot of occupancy fraud where people say they're going to live in the home and then it shows up as a rental listing a week after closing. You dont want to deal with that. 

There was another post with a similar situation last week. They called the same thing out a few days before closing and it threw a wrench in the whole deal. 

Lenders price loan based on risk and an investment property is a much higher risk than a second home. A second home is typically in a vacation area more than 2 hours from your current home. There isn't really another option than the one proposed to you unfortunately. Even if you go with that option it needs to make sense on paper (Be a bigger home, closer to work, etc... something that makes the old property inferior to the new).

I'd recommend Ralph Pacheco at Leader One Financial. 909-816-7765