All Forum Posts by: Kevin Romines

there are programs that allow a buy before you sell program. Here are the basics to the loan program. 

If approved, a home buying service makes a guaranteed offer on the departing residence. (Not full market value.) They also determine how much equity can be unlocked early to go towards the new purchase. They can now make an offer that is not contingent on the sale of their home. Once they close on the new purchase they have 10 days to list the departing residence and 90 days to get it under contract. If it is not under contract in 90 days, home buying service company steps in to purchase the home for the pre determined offer price. They will continue to market the home for an additional 120 days. If the home sells for more than the home buying service company bought it for in those 120 days, the borrower will get to keep the "upside" minus any fees associated with the sale of the house. The fee is 2.4% of the final sales price of the departing residence.

I hope this helps?

While it is true, the lenders will make less money, its also true that the smaller loan amounts don't have enough leeway for any lender to make any money. Lenders only get paid when the loan closes, so it doesn't make sense for a lender to allow their Loan Officers to do loans for less than $100,000 as both the lender and the loan officer will make virtually nothing, yet the loan will take the same time and effort, (Actually more time and effort as there are fewer lending partners) as a loan that is $100,000.00 or more. Further complicating the issue is there are very strict compensation laws that may not allow a loan officer to be paid below certain thresholds. 

Therefore due to the compensation laws and super low revenue challenges, some of those loans just can not be made by virtually anyone. A credit union is different in these cases, so they are the go to source for any loan below $100,000.

That said, I have a hand full of lenders that will allow me to go down to $50,000 or more on the loan amount, but I would have to jump through a number of hoops and in the end, I would make virtually zero for my time. 

I hope this helps clarify why smaller loans can be very difficult to get done with most lenders. 

When using and FHA loan, if there is a non-occupant co-borrower that is a family member, on a 2-4 unit the max. LTV is 75% so a 25% down payment. Confirm that with a lender that you will be using for the loan.

For a fix n flip loan, most will go out to 2-3 years max. I would need to check with some of our lenders to see if they will go out to 5 years. Typically if you have a fix n flip loan on a property you are holding, you want to refinance for the hold into a 30 year mortgage. I'll send you a DM to discuss further. 

I've loaned on a few of these over the years. If the title was eliminated and they are permanently attached to the property, they can be considered additional units on the property. It can turn a single family into a 3 unit with the main home + 2 mobiles that are title eliminated and permanently attached. 

The other way these have been done by me in the past was giving no value to the mobile home and having it marked by the appraiser on the appraisal as no value additional storage. By doing it that way, no condition issues or repairs were called for. They can be done, just need to have the right loan officer on the loan. 

I hope this helps. 

The fix n flip industry works from the status of 4 tiers generally. The tiers are all based on the number of exits you have had in the last 24 months. 

We have many lenders that will do a fix n flip loan for someone that hasn't got any exits in the last 24 months. The rates will be higher and the LTV will be a little lower. Also reserves will be important to the loan approval as well.

That said, there are many loan programs that will fund this for you. Let me know if you have any questions, I'm happy to help you. 

They are a lender that we broker to. Personally I will not work with them specifically due to this fee. I believe they are recouping costs associated with loans they don't close. Most lenders (they are not a lender, rather a broker) doesn't have fees of this kind. I don't know what advantage you would get from working with them? If there are, fill me in, I'd like to know?

Depending how long you have had variable income, you can average that income for the last 24 months to then determine the debt ratio. Both FHA and Conventional will allow a 12 month review of income in certain cases. I would try that method and if that doesn't work, consider a bank statement loan depending on if you are 1099 or W2?

I hope this helps. 

Taxes and insurance are escrowed, meaning they will be part of your payment, however the payments shown are just principal and interest. So your monthly payment will be higher than what is shown here. 

I question if you really want a 3 year pre-pay penalty? The interest rates have already moved down and should continue to go lower in 2024. It could go low enough that you may want to refinance, but with a 3 year pre-pay penalty you will not really want to refinance or will pay a healthy penalty if you do so. 

I would get a quote for a 1 & 2 year PPP to see where you would be at with those PPP timeframes. 

I hope this helps?

As mentioned above, the credit score can still be workable down to a 620 on conventional loan and as low as 500 on a Non-QM loan. So depending where the credit score is, or will be during the loan process, will dictate the loan programs available. 

A lender should have the ability to do a Rapid Rescore if it will help boost your scores. I do them for my borrowers all the time. Best to work with a lender that understands all aspects of your situation and has the tools and loan programs to help get you from A to B. 

I hope this helps.