All Forum Posts by: Phil G.

@Drew Acocella

FHA transactions with a non-occupant co-borrower are limited to 75% LTV unless the co-borrower is related and the transaction is for a single family house. Without a co-borrower, lack of steady income will not allow you to qualify on your own.

Fannie & Freddie won't allow non-occupant co-borrowers on anything but a single family.

@Tara Lambert

My brokerage side-hustle is all about making referrals across the country, so I track the relevant laws.  Laws as to whom a licensee may PAY a referral fee and who can RECEIVE one vary a bit from state to state.  NC requires an active real estate license, affiliated with a supervising broker, to receive a referral fee.  Here's the relevant law:

http://reports.oah.state.nc.us/ncac/title%2021%20-%20occupational%20licensing%20boards%20and%20commissions/chapter%2058%20-%20real%20estate%20commission/subchapter%20a/21%20ncac%2058a%20.0504.pdf

Maine law requires that the seller provide buyer a property disclosure no later than the time the purchaser makes an offer.

@Guy Yoes

Do you originate your own notes or work with a broker?  The program you describe sounds a bit like Safeguard.  Always looking for another source for this type of note.  Can you share your source?  Thanks!

@Jorrin Crow

You might want to look at the NACA program (naca.com). It is a zero down payment, zero closing-cost program for owner occupied 1-4 family homes. Underwriting also uses a different methodology than the traditional FICO score approach.

Back in 2010 First Western Federal did a loan for me on a 1890 4-family.

Whether you can treat someone, who provides services to you, as an independent contractor  depends on the circumstances of the relationship and how much control you exert over the person in performance of their duties.  The IRS uses a test of 20 factors in the determination.  Google "20 factor test".

From the Texas Real Estate License Act..

(vii) would seem to indicate that you'd be acting as an unlicensed broker.

(1) "Broker":

(A) means a person who, in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration, performs for another person one of the following acts:

(i) sells, exchanges, purchases, or leases real estate;

(ii) offers to sell, exchange, purchase, or lease real estate;

(iii) negotiates or attempts to negotiate the listing, sale, exchange, purchase, or lease of real estate;

(iv) lists or offers, attempts, or agrees to list real estate for sale, lease, or exchange;

(v) auctions or offers, attempts, or agrees to auction real estate;

(vi) deals in options on real estate, including a lease to purchase or buying, selling, or offering to buy or sell options on real estate;

(vii) aids or offers or attempts to aid in locating or obtaining real estate for purchase or lease;

(viii) procures or assists in procuring a prospect to effect the sale, exchange, or lease of real estate;

(ix) procures or assists in procuring property to effect the sale, exchange, or lease of real estate;

(x) controls the acceptance or deposit of rent from a resident of a single-family residential real property unit;

(xi) provides a written analysis, opinion, or conclusion relating to the estimated price of real property if the analysis, opinion, or conclusion:

(a) is not referred to as an appraisal;

(b) is provided in the ordinary course of the person's business; and

(c) is related to the actual or potential management, acquisition, disposition, or encumbrance of an interest in real property; or

(xii) advises or offers advice to an owner of real estate concerning the negotiation or completion of a short sale; and

@Norma E. Vega Sanchez

Since your property will be owner-occupied, you will get the best rates using conventional financing or FHA through a bank or mortgage company. You will be able to tax advantage of a lower down payment, if you choose. If you want to buy and renovate a property, you can use an FHA 203(k) loan.

@Michael J Robinson

It can be an excellent program for the right buyer, but there are a few drawbacks:

• As previously said, it takes considerably longer to go through the program than just working with a regular loan officer
• Working through NACA can be frustrating. You must go through the process and follow the rules otherwise it will take you longer. Customer service is spotty, at best and dependent on which office/consultant you're working with. You need to be prepared to advocate for yourself to keep things moving through the process.
• You must either be in the target demographic (earning less than median income for MSA) OR be buying in a census tract that is eligible (based on the income demographics of the tract).
• In a competitive market, getting a seller to accept your offer, with the NACA qualification letter, rather than a traditional preapproval letter, can be a challenge.

Having said that.. If your cash is quite limited, so you need a no down payment loan with no closing costs, this may be worth it for you.

If you have some cash and take advantage of the buy-down program, you can get a great interest rate.