All Forum Posts by: Paul Crosby II

As an Ohioan, I can definitely attest to these being great for cashflow. Lots of homes that pass the 1% test and are fairly inexpensive

 I have a few closings i have done in Barberton.

I can send you some referrals for private funding

I have not used them personally but i would have the provide you some additional documentation.

Their website lacks the required disclosures that you see at the bottom of most mortgage and loan providers.

No NMLS ID or anything to give you an idea of where they are legally licensed.

Not saying it is bad but thats what i would look into

Hello

If you are looking for downpayment assistance you can get gifts from charitable organizations as defined by HUD.

LLC for a primary residence would likely require quit claiming and that puts you at risk for the lender to call the loan and require it to be paid immediately

I would concur with what is said above in terms of ITIN, down payment of 35% or so and it to be an investment property or second home.

My advice would be to chat with a broker as a number of companies offer Foreign National and ITIN loans. 

Retail lenders and banks are typically not as well versed in the Non QM space which is where you find these type of loans.

 Well now you are trying to get me in trouble.
Selfishly, as a lender i would not want a client to go somewhere else to get another preapproval.

Legally and Logically, there is no limit to the amount of preapprovals you can get and you can explore options with any and all that you choose. Keep in mind the hard inquiry window for mortgage  is 45 days from the date of your first hard inquiry. Ideally you would get all your preapprovals and/or comparison done in that window.

 So i would absolutely say have both.

If sellers and realtors are informed, they know that with the new LLPAs(extra fees) Fannie has added for well qualified buyers there will be a lot switching to FHA to avoid these.
This is addition to the fact that FHA allows for higher seller credits and more debt on the back end make it ideal for clients looking to stretch their dollars.

Also since the interest rate and points paid are significantly higher for multi units i would highly suggest having an FHA approval.

 I honestly cant think of much more to add as this sums it all up.

The only other thing i would suggest is to document as much as you can via Social Media and save as much liquid cash as possible.

Documenting on social media will help you build a following that you can use for raising money, ad revenue and selling information products from a financial perspective. In general, it will let you connect and share your story while allowing you to look back on how far you have come.

Saving liquid cash is important because even though you want to use OPM as much as possible, you want to have strong reserves. Real estate can be unpredictable at times and there is nothing like a war chest to allow you to float during tough markets or make acquisitions when financing is tight.

Hi Michelle.

As a lender, i will tell you that in terms of out of pocket expenses and cashflow the FHA loan is better.

Rate will be lower without points, less money down for multi unit(3.5% vs 15-25%) and you can get up to 6% of the purchase price as a seller concession.

In terms of making your offer better, you can opt to use some of the cash you are saving to cover the seller's closing costs or pay some sort of appraisal gap. 

This shouldnt be necessary since each loan program is equally likely to pay out. However realtors have a bias against FHA which leads sellers to have a bias. Primarily, this comes from the required inspection and higher possibility of a remedy (seller fixing items) being needed during the appraisal.

I would 100% suggest shooting for what will make you the most financially sound

Based on what i have seen it looks like 90 days.

Here is a link to a pdf that goes over this in more detail: https://ag.ny.gov/sites/defaul...

Hope this helps!