All Forum Posts by: Nicholas Covington

The lender will lend on the purchase price or appraised value, but whichever is lower. So if appraisal comes in low that's what they are lending off of.

@Robert Johnson. So really if you want to refi to conventional, you can do that whenever I guess. Though after reading this I would question your intent on occupancy and would probably not do the 203k for you.

What comes into play is that the next home you decide to buy will more than likely not allow you to get another FHA loan for 12 months from closing on the first. You might get lucky and slide through on that one, but don't be surprised if someone said no because they can clearly see on your credit report that you were FHA before and your name is in HUD system by case number.

1. We go by note date, so the day you closed was more than likely the day the note was recorded.

2. Doesn't really sound like a good deal if the mortgage is that high and the market rent is about the same. 

3. What does your contract say? Give them notice that you are not renewing and call it a day. They will have to just find their own housing, it is what it is. Just be respectful and give them a good notice, who knows they might not even want to renew. They do not need to know about your business changes, Regarding lease transfer that would be based on the laws of your state about what is required to be honored at time of transfer. Goodluck 

Value add or turnkey?

Sounds like they should have an attorney invovled. You can't just sit there and demand more money lol. She can hire her own appraiser if she wants but it would be a waste, the lender is the one in control, not her or him. Nothing can really be done until their divorce is final anyways, I don't work with pending divorce people.

No one is really going to have a good answer for you without doing the numbers. Get with a mortgage professional and have them run it. Your rate is going to increase by close 1% based on current conventional rates.

@Hector Salas There really is no way to escape it unless you are going to put more money down. It's either 3.5% with PMI for FHA or 25% down conventional for 2-4 units. At best you can go no doc route and get for 20% down.

So it's kind of pick your poison. Another thing to consider is FHA self sufficiency test for 3-4 units. So if you are buying 3-4 units and no one has mentioned this test, you might want to find another lender. You're welcome to PM me if you want concrete info.

@Chad Coon send me a PM

@Chad Coon what’s the purchase price?

@Corey Gregg

You would have to go FHA first as there are no 5% down conventional programs for duplexes. Then once you have the 20% you would need to refinance it to conventional.

PM me if you want a contact to assist.