All Forum Posts by: Mike Burkett

@Neerav Mehta You are correct.  Fannie/Freddie do not buy jumbo loans.  They do buy the vast majority of all mortgage loans below jumbo.  If you want to originate and sell jumbo loans, there is an investor market that buys those loans, aggregates them, then pools them into securitized bonds.  It is a well developed and complicated market.  If you want to become a mortgage company, you do need to be licensed nationally and in the state where you live (not all states require you to be licensed).  Most of those national licensing requirements can be found on the NMLS website.  National MultiState Licensing System.

@Devin P.  Talk to someone at your planning and zoning commission.  Is it allowable?  What are the restrictions and procedures?  Nail down the costs.  You will probably need to spend some money to get to your answer (eg engineer, architect).  Run the numbers.  If it works go for it.  You may want to think about subdividing and building and selling houses one at a time if you are are tight on financing.  Good luck.  

@Keegan Beck  Keegan, you have to get your credit fixed.  I don't know how bad it is, but below 680 and you may not get approved for non conventional financing.  Conventional financing will be difficult or impossible at or below 680.  In case the refinance won't work for you, make absolutely sure you have enough room to lower your sales price if needed to sell the house.  I'd be happy to visit with you about your credit.  There may be some very easy fixes that can raise your score immediately.  

@Darren Mesibov That is correct. If you want a gov't guaranteed loan (ie Fannie), they require the title be held by individuals. If you want the property in an LLC, you will need to go with commercial financing. Rates are higher, but the loan is based on the income of the property, not the income of the borrowers. Credit scores are important for each individual borrower. Feel free to call me if you want to talk in detail.

@Darren Mesibov  Delayed financing is not the same as a cash out refinance.  What ever terms you could have gotten if you got a mortgage when you bought the house are going to be the same as when you get delayed financing.  You have up to 90 days.  If you could have qualified for 75% of the purchase price when you bought it, that is the amount you should be able to borrow with delayed financing.  If you are buying this with partners, document where all the cash comes from.  You will need to provide that.  Fannie Mae does not lend to partnerships.  You will need to purchase the property in the name of each of the individual partners.  Interest rate should be the same if you buy it in your name individually or 2 or 3 of you buy it together.  Rate won't change because of the number of buyers.  Rates for investment properties are higher than rates for homestead.  If you tell the lender you are going to live in the property you will get a lower rate.  If you tell them you are going to rent it out, the interest rate will be higher.  

@Gerald Bennett  Gus, I don't believe the information on this thread is correct if I correctly understand your problem.  You paid cash for a house and you now want a mortgage on it in less than 6 months.  Fannie/Freddie will allow you to mortgage that house just like it was a purchase mortgage up to 90 days after you close on the property.  The loan will be based on the purchase price not the current value assuming you did some rehab or bought it under market.  The seasoning issue comes in when you buy the house with a mortgage and then want to refinance it with a cashout mortgage.  That is when you have to wait 6 months.  If you were looking for just a rate and term refinance (no cashout) in this example, you don't have to wait the 6 months.  If the rules have changed, somebody please enlighten me.  

I've got one if you will reach out to me.  mike at sfiloans.com

@John DAmbrosio  If you are looking for a single loan with a single closing that funds the construction of your new house and turnps into a long term amortizing loan once you have a tenant in place, the only place I'm aware of with a loan like that is a local community bank.   If you have the financial statement to qualify, that is where I would go.  

It is more typical to get a construction loan and once completed and occupied, that loan is paid off and replaced with a long term mortgage.  We were doing a lot of construction loans prior to the pandemic.  The secondary market of people buying those loans shut down and we are waiting for the market to reopen before we begin offering those loans again.  

@Randy G. I'm not a lawyer or accountant. Run this by one of them. Sounds like she has better credit/income than you which is why you think she can get a better interest rate. Putting her on you LLC doesn't solve that problem, they will still use your credit score. I'd deed it into her name and have her refinance the property. Any available cash out can go to you. Since you are now married, she effectively owns 1/2 the house anyway. I wouldn't think it would create any tax liability. I don't know how long you have owned the property. If it is a short period of time, you may have a hard time with a lender making a loan based on market value rather than purchse price. Good luck. Let me know if I can help.

@Katie Jewell  Katie, I'd be happy to set up a call with you do discuss your needs and see if we can help.  I started my lending career 20 years ago as a commercial real estate lender.  I've helped hundreds of multi family property buyers across the country.