All Forum Posts by: Mike Scaccia

Hey Mark!

So, i am not located in MI myself, but have a ton of friends who turned clients that were out in Detroit and Grand Rapids area for school and ended up staying. 

I've worked with dozens of buyers to purchase 2-4 and 5+ unit buildings in those areas, and around the college towns. I'm an investor myself and work with a few financial advisors around you! Would love to connect and explore further how we might be able to work together!

Best of luck on your journey. The path to building a real estate portfolio is extremely rewarding!

Hello BP fam!

Yesterday we received amazing news around 2-4 unit financing for our house hackers!

This change will take place on November 18th and allow for clients buying a 2-4 unit owner occupied property to only put 5% down.

Main take aways:

• 5% down on 2-4 units
• No income limits
• No self-sufficiency test
• Primary residence required
• No first time buyer requirement
• Minimum credit score: 620+ and must also pass through automated underwriting system
• Reserve requirement: Based off automated underwriting findings
• Maximum Debt to income ratio: Based off of automated underwriting findings (expecting this to be 45%-50%)
• Loan limits:
• 2-unit = 929,850
• 3-unit = $1,123,900
• 4-unit = $1,396,800

Refinances:

• Clients can now also refinance on a conventional mortgage of a 2-4 unit with only 5% equity. This is a great solution for anyone looking to refinance out of an FHA mortgage.

Definition of limited cash out refinance:

• Client is not required to take any cash out but the maximum they can take out is the lessor of 1% of the loan amount or $2,000.

Accessory Dwelling Units:

• Fannie Mae does not currently allow for the use of ADU's on 2-4 units. We do have work arounds for this and you can reach out to me directly if you have a property that has an ADU.

Guideline below and attached:

• https://singlefamily.fanniemae.com/media/36841/display

please reach out with any questions!

Good afternoon Huy,

After fannie and freddie released updates regarding loan level pricing adjustments for credit score and LTV earlier this year.

We are seeing that in alot of cases putting down less money is yielding people better rates. I always like to show people here is a 3% down, and 5% down and looking at both borrower paid monthly premiums on the insurance as well as a single premium where we are buying out the mortgage insurance upfront. You'll want to consider both your short and long term financial goals for the property. If you are shopping rates, i'd love to toss my hat in the ring! Feel free to send me over your email or send me a message! Thanks!

@Endory Neves 

Congrats on making the jump to house hacking, thats truly a recipe for sucess and a great way to get started in RE investing.

I am a mortgage lender in Chicago but lived all over Texas and have quite a bit of business in various cities around the state. 

My real estate investing portfolio started with a 4 unit apartment building that i purchased for 3.5% down, and rented out the reamining three units.

The mortgage pays itself, and we seen a nice return every month! If you have any questions on your financing options i'd love to be a resource for you.

Feel free to reach out at any point if you have questions!

Cheers,

Hey Angela!

Happy to shed some light on the scenario here. I am a mortgage lender, and do about 90% of my business on the west coast. 

During any type of refinance, even the property is owned free and clear the lender will need to qualify you via the fannie/freddie guidelines.

This being full document loans, paystubs, W2's, tax returns (if self employed or using rental income) assets for reserve requirements.

That being said, i work with a ton of NON QM investors that offer products more directed at investors, or high net worth clients or just anyone who has a hard time qualifying the traditional way. These loans can be DSCR (debt service coverage ratio) where you are qualifying solely based on cash flow, bank statement loans, asset depletion, or asset qualifying. In short, there is options out there that are a more "common sense" approach to qualifying, little to no documentation. I'd be happy to connect further and provide more details on any programs that suit your needs.

Thanks,

@Cody Cavenaugh

Cody, this is a great question! The main thing i tell my clients is that you qualify off of a monthly payment, not a purchase price or loan amount..

Selecting which product to go with you have to look at your plan for the future. Is this a forvever home, or something you see yourself in for only a short amount of time 3-5 years? In that case, I always advise that the client get into the home for as cheap as possible. Reason being, that if you are comfortable with a slightly higher payment (FHA 3.5% down) you can take the difference between the two down payments and re-invest the difference elsewhere. Tying money up in the house, you will eventually have to pay someone (refinance) to access that cash. Where it could have been invested and growing for you.

Consider looking at the mortgage as a tool that you can leverage, find a lender/loan officer who specializes in strategic mortgage planning!

@Changseok Kim Hope all is well sir!

I wanted to toss my hat in the ring, our company is correspondent lender working with 25 of the top investors.

It would be a pleasure to offer up insight and or generate a couple of loan options and quotes for you based on your loan scenario. 

We are licensed in all 50 states, and i myself do originate in Michigan!

Hey Kasey!

Congrats on making the jump to real estate investing! I am based in Chicago but hold licenses in most states, and for your scenario specifically I have a colleauge who has family up in Wisconsin and is also licensed there.

I'd love to be a resource for you, and can introduce you to a phenomenal loan officer, who also invests in rentals himself.

Feel free to message me directly! Thanks and best of luck!

@Lacey Burns My pleasure Lacey! Sounds like you're doing all of the right things, and asking the right questions! ARMing yourself with knowledge will make the difference in your investing career!!

Go get em' 

@Faiz Kanash 

I am a correspondent lender here in Chicago and just wrapped up a deal with an investor client. He just finished his Fix n Flip and listed two properties this month.

I have access to some really great investors, who offer products directly related to your goals. If you have any questions or would like to set up a consultation please shoot me a message. I'd be happy to dig into your scenario and offer up any advice or resources that i have access to!

Thanks,