All Forum Posts by: Stephanie Medellin

PSA to any investors pursuing homes in default, especially where the owners still have equity: be aware of special rules within your state regarding contracts when the homeowner is in default.  These rules may not apply if you're buying as an owner occupant, but there may be additional protections for distressed property owners when an investor is buying the home.  Be sure you are using the correct contract for this scenario.  

@Nikol Catino We have lenders that will allow you to own in your personal name in FL for a DSCR loan. Lenders offering DSCR loans are generally more concerned with occupancy than how the property is owned, although for some that translates into more restrictive guidelines. Because these loans are for investors only, you will need to sign paperwork that the property will not be occupied by you or your family members. So while you can own the property in your name, you won't be able to live there.

@Jadon Grant If you have limited funds and want to partner with a friend, the best way to get your first property is really to find a multi-unit to live in, either with an FHA loan (putting 3.5% down), or a 5% down affordable conventional loan program. You could each live in a unit and rent the other 1-2 units out. If not, these loans wouldn't work for two people who don't plan to live in the property and you would need a higher percentage down, at least for multi-units. Going this route requires that you have enough income to qualify for the loan payments, or otherwise have the ability to repay the loan.

Are you trying to buy out of state solely as an investor?  As an investor you are always going to need a higher percentage down, although not 40-50%.  As others mentioned, closing costs and reserves are probably being included in the amount you're being quoted.  Reserves are savings the lender wants you to have available after closing.  

There are ways to get into a property with little to no cash out of pocket, but traditional loan programs will require you to live there.

The clause you mentioned is for brand new construction homes, not renovations, so you should be fine.  

Something else to be aware of - if this is a flip and was completed quickly (less than 90 days), you will need to watch out for the flipping rules with FHA. Your buyer cannot enter into a contract to buy with FHA financing if you purchased the home less than 90 days ago. If you purchased between 91 - 180 and the purchase price has increased significantly, they may require a 2nd appraisal. This doesn't necessarily mean the sale will be more difficult, just that the value must be supported.
  

Hi Kanoa - are you still looking for a loan for your investment property? I can offer cash out refinance without a seasoning period when purchased with cash up to 75% LTV.

Are you a high net worth individual but have a hard time documenting your income?

Experience the ease of home buying or refinancing without the need to qualify with tax returns or prove inconsistent income.

With a post-closing minimum (after down payment and closing costs are paid) of $500k in eligible personal assets, this loan program may be the solution you've been searching for.

Eligible assets may include: 

Checking accounts

Savings accounts

CDs

Money market accounts

Treasury bills

Stocks* 

Bonds*

Mutual funds*

Retirement accounts*

*Starred account types will be discounted to account for fluctuations in value. 

Available for properties throughout the state of California

Contact me for more details! 

Stephanie Medellin

(714) 603-9383

[email protected]

https://instantratequotes.com

This is referring to mortgage insurance, also called PMI, private mortgage insurance. It insures the lender against the borrowing defaulting on the loan. It is paid by the borrower.

Property insurance will always be required in case something happens to the property itself.  Even if a tenant has renter's insurance, the tenant's policy only covers the tenant's personal property.  The landlord always needs insurance to cover the building / home if it's financed. 

Yes, it's standard across most loan types to be able to do a cash out refinance, even if there isn't currently a mortgage on the property.

No reason to think that builders won't agree to cover the buyer's agent fee.  It's a standard cost of doing business for them.

Yes!  Most lenders will gladly talk to you to help you start planning a purchase.  The best thing to do is have a conversation with a broker or lender (or a few brokers or lenders), see who you like working with and get a rough idea of how much you would qualify for based on verbal information.  This is easier for someone who earns a fixed salary, no overtime, no complicated pay structures, not a business owner, etc.   

You can also fill out an application, submit your documents (income, assets, etc), and get pre-approved.  This will allow you to shop for properties more easily, and will also make it easier to run different scenarios for different properties that you view.

The best way to prepare is to have your income for the last two years and YTD available, know how much you have available to spend, and write down any questions you want to ask.  

They should be able to give you a rough idea of an interest rate (of course interest rates change daily) based on estimated credit score, purchase price, down payment amount, location, loan type, property type, etc. 

All of this is necessary before looking at properties because you need to know how much you can borrow, how much you need to put down, and approximately how much you will make from each potential rental.