All Forum Posts by: Shivam Patel

@Zack Karp

I didn't know that. So I should wait then a few more months to finish out the 1 year, then can I get a conventioal loan towards a fourplex? Because if I refinance then I'd be required to stay there another year right? I rather just finish out my year, keep it as is, and just apply for a primary conventional on my next property? But do I have to be forced to refinance my loan after a year into an investment type or anything? I want to make sure I do everything the right way..

@Wayne Brooks

I mean I originally planned to stay the whole year but with low rates right now I want to figure out a plan to buy my next property and not sure what the best move is, while also following all the rules. Do you think my option is to only refinance to an investment property? It has 75% LTV looks like. And I guess I would have to stick it out a few months until I have enough to buy again right? I know if I sold the sfh I would take a big loss I think. Sellers commission of 6% + new closing costs = 25k about. The house would appreciate to +20k in today's market but I don't think the capital gains include those losses if I sold now, and on top of that I think I'd pay taxes on it too. Overall I would've lost atleast 30k I think if I sold now.. not sure what to do. There's got to be a way.. I really shouldn't have bought this to begin with and went with a fourplex...

Thanks for the document, I'll into this, I don't understand some of the terms of home-ready, and limited and non-limited refinance just yet. However, did you mean that its a terminology issue based on how I'm explaining it to the loan officer? I'm not doing anything illegal right? 

@Jill F.

Yeah so I did disclose that I won't be owner occupied, and then the conversation turned to I can't refinance into a conventional loan, it would have to be a investment loan or he would call the loan due. I've followed all the guidelines, and have lived there this whole time but I thought I can refinance into a conventional loan because I'm still currently living there until I find my next property (4plex) which I intend to use fha. The one I'm househacking right now is sfh with 2.325%. I can't afford to refinance it into an investment type loan because not only will it be more in interest rate but also my down payment has to be a lot higher and my monthly payment will be higher in which case I can't cashflow.

@Jill F.

Oh I know that, I've been living here for 7 months so far but my goal was to refinance out of an fha into a conventional so I no longer have to, but I didn't know you can't use a conventional for investment?

Hey guys,

I'm househacking in New Jersey. I was refinancing my loan out of an FHA into a conventional when the loan officer and I were discussing the rates and all. Then, I asked him, what my chances of applying for an FHA after would be. He then proceeded to tell me he can't then apply me for a conventional loan, it must be for an investment property, and can they can potentially call my loan note due if i don't use it as a primary home. I am staying there currently, but then can I not move out at all without turning into an investment type loan? Rates are much higher and I may not be able to refinance then. I don't want to do anything illegal or anything to put me at risk of the loan note being called due. What should I do/ how are other people getting loans for their second property?

Sincerely,

Shivam Patel

@Shivam Patel it's under general real estate investing, titles incentivised tenants to leave property (good tenants)

@Nicholas Covington ok I'll connect with a lender and see. Also would you mind bringing some insight on my other forum post? I'd love to hear your input.

I bought my property in September at fha for 2.375% and I almost have enough capital to get my equity to 20%. I want to refinance into a conventional so I can leave my house hack early and cashflow $500, and reset my fha so I can use it to finance getting another property. Is it worth it?

@Gervon Thompson

Oh man haha, this reminds me of my thoughts from a year ago. I had medical school loans and masters in computer science loans. I bought a house with fha and rented it out. Looking back, I don't regret it. My loans was 6%interest. I was able to deduct interest of my student loans and based on what amount you said I'm gonna say your monthly payments are around 500 bucksish/month right?

Now if you are renting, and it costs you 700-800$+ more, and the property youre looking at will allow you to house hacking and cash flow, it's worth it right? Even if it's not $500. You've eliminated rent, which costs a lot of people a significant portion of there income. Now even if you don't cash flow using the same example, losing $300 bucks a month, you're breaking even because again, no rent. Only different is, you can deduct taxes on rental property and you still save more. No matter how you look at it, investing was the way to go for me. Also some parts of closing costs are deductable.

Ideal scenario, if you cash flow positive at least 500$, you are already financially free because that cash flow pays down your student loans and you're living rent free. Also you don't have to worry about the first months mortgage. Double check with the bank you're using but for me I didn't have to pay for two months, was part of my closing costs.

The only worst case scenario I see here is not being able to get a tenant in, or analyzing the property wrong or making bad investment.

Yeah just assess how much risk your willing to take and worst case scenarios for yourself.