All Forum Posts by: Stephan L Schnaiter

@Preston Timothy, you can do this with FHA. You can typically count 75% of the previous rental income (from the units you will not live in) toward your qualifying income.

You can also use rental income for Conventional, but not without a 15% (duplex) to 25% (3-4 unit) down payment. 

@Matthew Becker has a good point--stating your goal may help you get more specific and accurate advice.  

That said, a VA loan charges you a guarantee fee that is financed into the loan. With that much equity, you should compare rates with a conventional loan (no PMI but potentially higher interest rate) to see if the difference in rate would make sense vs the G-fee. This would depend on loan purpose and how long you plan to hold it. Also, if you think rates are coming down and a future refi is part of your strategy, then it's easier and cheaper to refi VA to VA.

@Ryan Fox some great info here, but while you are correct that a service member assuming a VA loan restores eligibility to the initial veteran, making the deal more attractive, it is not strictly true that a veteran can only have one VA loan. A veteran can have more than one if she/he has not used all of her/his entitlement on the first one. It is not uncommon for a veteran to get a second VA loan.

Your point about it being more attractive remains valid, however. 

For a conventional loan product (backed by Fannie Mae for example) the minimum down payment for an investment property duplex is 25%. So that will be a consistent requirement for conforming loans. Maybe start shopping local banks and credit unions to see if any of them have an appetite for that in a portfolio loan product? 

@Joseph Brown -- Yes, the VA allows for multiple VA loans for eligible veterans, specifically for the scenario @Andrew Postell mentioned above. A veteran can buy a primary residence, and (at least 210 days later) buy another primary residence and relocate without selling the first.

Yes, consider refinancing (before you move, if possible) for a few reasons.  

1. You have enough equity to get rid of PMI, which will never go away on your FHA loan. This should reduce your payment by roughly $85 per month (I'm estimating based on an original sales price of $125K with 3.5% down)

2. You can probably improve the rate, reducing your payment further.

3. If this is still in the "just thinking about it" stage and you have not committed to making a move, you may be able refi as your primary residence, rather than as an investment property or second home. LTV and rate requirements will be more favorable on a primary residence refi. Also, your income might be more stable if you are also considering an employment change somewhere down the road.

However, if you move a certain distance away, you might be able to do a new FHA loan without refinancing the old. FHA will allow you to use the program for a second primary residence if you had to relocate away from the general area of the first or due to other mitigating circumstances. Check with a local mortgage broker to determine whether this might work for you.

With Conventional lending if you plan to live in one unit of a 1-4 unit multi-family, the required down payment more like 15%, if that helps at all.

Hey, Dylan. 

Generally speaking, 12 months is the minimum. There can be exceptions. While you may not directly notify the bank that you moved, they might be notified of a new mortgage credit inquiry, or become aware of changes to public record information, an application to use your VA eligibility for another home, a change of vehicle registration, a new filing for occupant exemptions on taxes for a different property, etc.

I'm a mortgage broker in Greenville, SC, so this popped up on my "Greenville" keyword alerts.  I don't have any vested interest in this, as I am not licensed to lend in NC.  However, I wanted to offer a few thoughts.

1. Continuity of income.  If your job has an expiration date on it (i.e.--you've given your employer notice that you are leaving a month or two down the road), it will be difficult, maybe impossible, to use your current income.  However, your income stability should improve once you are a W2 employee of an EMT company.

2. FHA doesn't finance investment properties straight out. You would need to buy a 1-4 unit property to live in at least one unit of it to be eligible for FHA financing.

3. A non-occupant co-borrower (parent, grandparent, great-aunt Ima Jean) might be an option to bring added income stability to a loan application.  The NOC must be credit worthy and have enough income to cover his/her own liabilities with enough leftover to help supplement your debt to income ratio.

4. Go to your local CREIA and talk to hard money lenders and other investors about non-conforming loan opportunities.

I am actively looking for financing for new construction on investment properties that I intend to refinance and hold after completion.  I am in contact with a group called Rotay Capital Finance and would like to hear about any experiences (good or bad) with them?  What other groups or lenders I should be looking at?  

Thanks in advance.

Hey, Carey.

Try Sheffield Roofing.  Kim is the contact but her husband is the roofer.  They are good, honest people.

Best of luck.