All Forum Posts by: Nicholas Iglesias

I would suggest a DSCR (Debt Service Coverage Ratio) Loan. They will lend as long as the (Example) 110% - 115% of the PITIA is covered by the Rent which from what you are telling us more than exceeds it. Rates should start in the high 5's. Some lenders will give you 30-year amortization with a 2-3 year PPP.

@Eric Mcginn

Yes, you should be able to. However, if you plan on cashing out on the property you do have to establish that you have lived in the property for at least 12 months prior to cashing out. If you don't plan on cashing out you can always just rate and term refinance to pay off the commercial loan, etc. 

@Pablo Barrientos

As long as 75% of the rental (if these properties are leased) covers the mortgage should not affect your dti. But as @Derek Dombeck pointed out, it may be time to reach out to private investors that qualify you based of DSCR (Rent vs Mortgage).

If you need more info, don't hesitate to ask.
Happy Investing!

If you are looking for a conventional loan, At least one client on title greater than or equal to 6 months prior to closing. If you paid for the property with funds from another mortgage (Example: HELOC) you may be able to do delayed financing.

Hope this helps, 

Happy investing!

My apologies, that is correct. Forgot that we were speaking about a Duplex.

I would just stick to the FHA financing and refinance down the road when you hit the 80% LTV Mark. BEST OF LUCK!

Regards,  

There are Conventional Down Payment options starting at 3%. I would contact a broker or lender for more info so they can guide you and see what option best suits your needs. The rate might be a little higher in conventional but if your credit score is good, you might save money in mortgage insurance compared to FHA.

@Brennan Hile Why aren't you financing Conventional off the start? If it's due to qualifications I would do as @Chris Mason suggested and avoid as many fees and buy down points to avoid paying additional for savings you aren't going take full advantage due to only maintaining the loan for 2 years. 

@Jimmy Wen some brokers may charge fees and some will actually be cheaper compared to direct lenders. Even though brokers are middlemen, they may even get better rates on the wholesale lending side as opposed to going straight to the bank. 

The fee brokers get paid does not usually come out of the client's pocket but is paid by the third party wholesale lender who is funding your loan.  

In my opinion, I would just contact both options and ask for a loan estimate of fees and rates to choose accordingly. 

The max LTV for a conforming loan cash out on an investment property is 75%.

Hope this helps.

It all depends on your situation. Closing costs ( title, escrow etc) isnt really controlled by the mortgage company unless they are charging you junk fees or origination points. Just shop around for the best interest rate and lowest fees. Every bank, lender and broker has different rates due to yield spreads etc. 

Best of luck!