All Forum Posts by: Nick Velez

Hey Travis, you could go with a Non Qm product such as DSCR loans. These loans don't take into account your personal DTI and mainly care about the properties ability to cash flow. LTV's range from 75-85% depending on your experience and credit score, and are offered in 30 year fixed terms. Feel free to message me if you have any question!

Conforming loans backed by Fannie/Freddie are only made to individuals and not business's so anything outside of this would be a commercial or private loan. So with that being said, because you want to close in an LLC, that almost right away requires a commercial loan, regardless of the amount of units. Feel free to message me as well if you have any other questions!

As mentioned above, you will need a non convectional loan. My personal favorite loan product right now is DSCR loans. They qualify you based off the cash flow and your credit score, instead of your personal income. The rates are indeed higher than a conventional loan but nothing insane and you can close in a LLC.

@amable John aguiluz XIii I am personally going through a DSCR loan and my rate will be in the mid 4’s for a 30 year fixed. DSCR loan pricing is dependent on the LTV, your investor experience, and credit score (pricing is the same for 740 up). These loans are inherently more risky for lenders so they do require a slightly higher interest rate. Feel free to message me if you want more details on my loan scenario.

@Nick P.

Sounds good! I will be looking out for it. 

@Nick P.

Hey Nick, FHA loans are going to want to see that he is employed and has income coming in that is stable and likely to continue. With him not being employed, he will not fall within this guideline. With that being said, there's always another option! He could look into a non qualified mortgage such as DSCR loans that don't take into account personal finances, and more so worry about the properties ability to cash flow. Feel free to message me if you have any specific questions about it! P

@Corey Farnsworth
Hey Corey, in terms of how a brokerage will interact with an LLC, it comes down to which loan product you go with. As mentioned above, closing in a LLC with a conforming loan usually does not happen. There are non qm loan products however, that will allow you to close in a LLC. I am in the process of doing a DSCR loan for a short term rental here in Florida, and I will be closing in a LLC. Someone mentioned that you could close on a loan in your personal name and then transfer title into your LLC, but not all lenders will allow that and it could put you at risk for the due on sale clause. I work with an investor who is in asset protection mode, and he was able to transfer title into LLC's for some of his properties with no issues, and on the other end, some of the lenders for his other properties told him no. Feel free to message me if you would like some more info on the Non Qm options that are available to you, or if you want to connect. I am about an hour and a half from you in Gainesville Fl.

@Lauren Zuend Exactly! The appraiser will calculate a rental estimate for the units based off of rentals in the surrounding area and then the lender will allow you to use 75% of that number to qualify.  I believe it will definitely be the same for you but you just have to take the hardest step, which is the first step.  Best of luck! 

If the house you purchased through the foreclosure is an investment property, you can do a cash out refinance with a DSCR loan. These types of loans don't look at your current finances (but you will need to get your credit up) but instead, loan you money based on the cash flow of the investment property. So in theory, you could use a DSCR loan to do a cash out refi on your current property, and then use that cash down the road to purchase another investment property.

Hey @Lauren Zuend, I started my real estate journey out using a FHA loan to purchase a town house that I house hacked. As you mentioned, FHA loans do have DTI and credit score guidelines but are generally forgiving. Keep in mind that FHA loans have a new rule where if you purchase a 3 or 4 unit multifamily property, it has to self sustain itself. This means that 75% of the rental income from the other units, has to cover your PITI. My biggest piece of advice though, is to get started. Purchasing my first property and house hacking it has opened so many doors for me and is definitely the best decision I have ever made!