All Forum Posts by: Stephanie Medellin

Yes, a local property management company would be fine to meet the requirement.  I am thinking of offering property management with my real estate brokerage, but trying to finish some of my own projects first. 

I guess the whole reason behind the local agent rule is that when there are property violations, they don't have jurisdiction to serve the owners if they reside out of the county.  I'm not too sure how that works legally, but that's what I was told.  On one hand, I can see that they are trying to improve the housing standards by making sure everyone follows the rules and keeps up with maintenance.  On the other hand, I do feel it drives away even well meaning property owners (particularly those who like to self-manage and may live 15-20 minutes away, but in the next county) because of the onerous requirements. 

Sorry for the late reply - my Bigger Pockets emails go to a different folder in my gmail that I don't check all the time.  For all rentals other than single family homes and owner occupied duplexes, Schenectady requires an inspection of each unit before it is rented out (every time a new tenant moves in). 

Checklist:  http://www.cityofschenectady.com/DocumentCenter/Home/View/185

Also they require landlord registration and a local person who resides within the county to accept any legal notices:

Here is the landlord registration form:  http://www.cityofschenectady.com/DocumentCenter/Home/View/184

Hi Peter - I'm in the Capital Region (Schenectady, 15-20 minutes outside of Albany).  Schenectady's downtown has already been revitalized and many of the remaining buildings are being redeveloped right now.  Schenectady is the home of GE and also has an Amtrak station that goes to the city.  They are also building a casino development on the Mohawk River waterfront.  I've renovated buildings in Albany but prefer Schenectady mainly for the smaller town feel.  There are still lots of great opportunities here.  It might be a bit harder from a management perspective because they have a rental certificate ordinance here.  Not 100% sure, but I think Albany might have something similar.

What a beautiful job you did on that home!!!  Love it!  Love the numbers too.

I just want to clarify for anyone reading this post - The 5% down with the ability to remove mortgage insurance after your balance is paid down to 80% of the home's value is still a conventional loan. Conventional loans have PMI, or private mortgage insurance, and FHA loans have MIP, or mortgage insurance premium. Please don't confuse the two, because FHA loans now require MIP for the life of the loan for 30 year loans with a minimal down payment.  It can only be removed by refinancing into a new loan.

Hi Alex,

What type of loan did you apply for? Minimum scores will vary slightly from lender to lender, but guidelines and cutoffs are in 20 point increments (580, 600, 620, 640, etc.) Conventional loans usually start at 620, and FHA or other insured governments loans can go lower (as low as 580; and sometimes even lower than that).

If you checked your score through a credit card, or an online service, it will depend on which credit bureau they get their data from.  For example, Capital One offers credit score tracking, and so do Discover Cards.  One may partner with Transunion and another may use Experian or Equifax.  Each bureau calculates your score a little differently, and not all accounts report to all three bureaus.  Mortgage lenders will look at all three scores and take the middle of the three.  If you have a 640, 619, and 615, your score for mortgage purposes will be 619 even if you have a 640 with one bureau.

You are so very close, and scores do fluctuate from month to month.  Ask your lender if they can provide a "What if" scenario to see how you can raise your score a few points.  Maybe you could pay off a high balance credit card, or take care of deleting any errors on your report (if there are any). 

If you have a limited credit history, perhaps you could be added as a joint account holder on a family member's established account?  For example, a relative has a credit card that has been open for 5 or 10 years, has never been late, and has a LOW or ZERO BALANCE.  This is VERY IMPORTANT - You don't want to be added to a delinquent account or an account with a large balance that will add to your debt - it will hurt your debt to income ratio and you will then need more income to qualify for the same loan.  If you can get another good account reporting on your credit, this could help raise your score.  The person you ask doesn't necessarily have to give you a copy of the credit card to use, they will just need your social security number to add you to their account.  Obviously, make sure this is a person who you really trust.

Just because you were denied this month, as soon as your score improves, you can re-apply.  Your lender will obtain a new credit report with a (hopefully) higher score, and you should be able to refinance.  Best of luck to you!

The cost is not negotiable. Lenders have to go through an appraisal management company (AMC) to select an appraiser (thanks to government regulations), so they are not able to select the appraiser or negotiate the rate directly. For 2-4 unit properties appraisals run about $600. A mortgage broker would be subject to the prices of the appraisal management company used by whichever lender your loan is submitted to. The appraisal is done for the benefit of the lender, not the broker. (Meaning when the appraisal is prepared, it is prepared for "Name of Lender."

The only way a broker would have some flexibility on price is choosing a lender solely based on which AMC is used, and how much they charge, but a broker should be choosing the best possible lender for your scenario, not trying to save you $50 on the appraisal!!!

The seller still owns the property, so they are still responsible for paying for necessary maintenance and repairs, and if they're willing to hire you, great! I do not believe this would have to be shown on the HUD if it's a seller expense before closing. Even if the requests are written into the contract (which I imagine they would be), it wouldn't be shown on the HUD because the money is not being paid through closing; it is simply a seller expense before closing. There are still a few things to consider.

If there is damaged plumbing or a leaking roof, and it's written into the contract for that to be fixed, the lender most likely will want verification that the repairs have been made or they will not approve the loan. In this case, I would check with your loan officer what documentation will be required. If they are going to need an invoice for work completed, make sure an invoice from you or your company will not be considered a conflict of interest. That may be up to the individual lender's discretion.

If you're just asking for new carpeting or other cosmetic items, then you shouldn't have to document anything for the lender. Either way though, I don't believe the cost would be shown on the HUD.

I'm not familiar with USDA loans but I imagine they are somewhat similar to FHA. With FHA, if repairs are required by the lender because of something noted on the appraisal, the appraiser would just need to revisit the property to verify that the repairs were made. I have had loans where a receipt was requested and other times no documentation was needed. If the repairs are being completed before the appraisal, you shouldn't run into this issue.

Why not call up a local title company and ask them to explain the benefits of title insurance and exactly what they will do for you.  That might help answer your question, and give you a little more insight into the process in your particular state.

Personally, I would just get the title insurance for the peace of mind, considering it's a few hundred dollars.  You don't know what you don't know (i.e. if there's something you missed or something just not showing up in the records).  An owner's title policy will cover you as long as you own the property.

Yes, with less than 10 payments left it should be excluded from your DTI, unless they see you would have a problem making the payments. You just can't pay it down after you've applied for the loan.

On the other hand, if your balance is low enough and you can refinance the car loan to a much smaller payment, that could help your DTI too, without having to lay out too much cash. Not sure how refinancing your car loan right before applying will affect your credit score.