All Forum Posts by: Stephanie Medellin

The only limitation will be your debt to income ratio with additional properties, and the number of properties you're financing with conventional financing. There are no waiting periods between purchases. The only waiting periods you would encounter are for cash out refinances, or refinancing and trying to use a higher valuation. You won't be able to use the new appraised value for a year when refinancing.

I had a client who had a tax lien and I remember calling because it appeared Experian wasn't reporting correctly. They told me they don't necessarily report the judgments / liens as paid, that they only report its existence.

Unfortunately since it's under your name and reporting, I imagine it would be quite difficult to have removed, since it's legitimate.

Like the other responses say, a 709 credit score is still going to get you favorable rates, but you would get slightly better pricing with a middle score of 720, and a little bit better with 740.

Unless you're looking at a jumbo loan, you should be fine getting a great loan with a 709. You could ask your loan officer to run a What If simulator to see how much of a score boost you would get by paying down your balances even further. They could also simulate what your score would be without the judgment. They have to pay a fee for this service - I think it's about $6-8 per bureau.

Hi Joe,

You should be able to get started using a private / hard money lender, just be aware the interest rates are going to be much higher (in the 8-12% range). You will be able to borrow about 65% of the purchase price, assuming it appraises, so you would have to put 35% down. After closing costs that means you're looking at a $100,000 property to start.

You won't have to worry about proving income for this type of loan.

If you want to use your self employment income in the future so you can get more favorable returns, you could just start claiming more income over the next two years. I know that's not ideal, since no one wants to pay more taxes than necessary. If you plan to go this route, either have a business license or have your taxes prepared by a CPA so you can provide documentation for a traditional lender.

It's possible that you could get a loan with less than 2 years self employment income, assuming you have a history of work in the same line of work.

You will definitely want to have a CPA prepare your taxes, or have a business license. These are two options to prove your business is legitimate. Also, don't write off too many expenses on the Schedule C. You want to show enough income on your tax returns to support the payment. Loans are moving to a maximum DTI of 43%.

You do not need an MLO to originate a seller financed loan unless they are financing multiple properties during the year. Have an attorney prepare your purchase offer / contract and the deed of trust or mortgage, and make sure you're satisfied with the terms. Preparing these documents is not something a mortgage broker or loan officer does.

Yes, you get the deed at closing and the seller will get a lien on the property. I'm not sure of the proper names in PA, but when the loan is paid off (refinanced or otherwise), a deed of reconveyance should be filed with the county as evidence that your loan has been paid off.

Wow, I'm sorry to hear something like that happened to you. Hopefully your entire agreement was in writing and can be documented. You have tried to amicably and reasonably resolve this issue, but it doesn't seem to be working. I also don't agree that you should have to pay fees on money that was never given to you.

In the future, I would absolutely recommend using an escrow company to hold the funds (ALL of the funds, at closing). In my experience, when a loan funds, the entire amount is deposited in escrow. The lender never holds the funds! Of course, this is California and every state is different.

For now, I would contact a real estate attorney for advice specific to your contract and your state.