All Forum Posts by: Morris Cohen

It all depends. Our guidelines are 75%. I would need a full picture to see if an exception is possible. I got one last week to do 80% rate/term on an investment property, but the guy had $750k liquid post-closing, perfect credit and super low DTIs, so we felt comfortable. I can tell you 6-12 months won’t cut it. 

@Joseph Pytcher I can probably do it if the property is on the east coast, but the client must have significant liquid assets. 

@Frank HAll of the programs I am aware of whether through me or someone else all do a DTI calculation, so if you just went self-employed that can be problematic.

@Chris Mason thanks for the shout out!

let’s hope we don’t get kicked in the nuts in six months from now! We have pretty strong liquidity right now, which is likely what’s driving the decision to keep the product competitive, but I guess we will find out!

@Wilson Gonzalez if you have a specific property do the cash out refinance. you get to lock in a low rate and have an immediate use for the funds. If you don't have a specific property in mind I'd get a HELOC. It give more flexibility to use the funds and pay interest only when you draw funds and allows you to use the funds over and over again assuming you plan on using the brrrr method. Also, for lines below $250k there are usually close to no closing costs. Feel free to PM me if you'd like to talk HELOCs on either primary or investment properties.

Just sent the rates- we are still pretty aggressive in my opinion.

@Chris Mason @Roman M. @Chris B. @William Lee

Fannie Mae is still doing cash out to 70% on 2-4s and 75% on SFR. Freddie Mac is no different. Both combined own a majority of loans in this country. The bank I work for is also doing cash out investment at pretty aggressive rates. These are all qm programs though.

What am I missing here? Are you talking about non-qm? 

This is an issue with many of the mortgage companies. If you go directly to a bank it won't be an issue. There liquidity concerns with many of them, but I can assure you Fannie Mae is still allowing for cash out refinances. 

If you qualify from a DTI perspective I can help and so can many other lenders. Feel free to PM me to get in contact.

@Michael Thompson the house is in Atlanta. The tenant has been there for two years and although they don’t take care of the house has always paid on time. 

I have a rental property that I was thinking of getting rid of. The property manager was terrible and the tenant isn’t taking care of the house. After firing the property manager, I have had increased exposure to the tenants. Apparently the tenant will be receiving a large settlement when her son turns 18 and expressed interested in buying the house all cash when that happens. I’d like to sell this now. I have a mortgage on the property for 80k and they purchase price would be around $130k. If I’m lending her $125k to buy the house but I don’t have the funds to pay off my $80k, what’s the best way to structure this?