All Forum Posts by: Shaun Weekes

You need to find a loan officer or broker thats uses banks with no overlays. Overlays are guidelines above and beyond what Fannie Mae and Freddie Mac require.

I hope this helps and have a good one.

0 Votes

Originally posted by @John Magnusson:

Hello. As a first time buyer I went forward with the mortgage company my realtor recommended and now I'm worried I did not get enough competitive offers for a loan. About us: My partner and I have excellent credit (~800), <1% debt-to-income, stable and verifiable employment for the last 5 years, never declared bankruptcy. Our offer of $600k was accepted.

Does anything about the closing cost or rate seem unusual? I started getting calls from other mortgage companies telling us we're overpaying. We close in 7 days.

Loan: $560,000
Rate: 2.875%
Down payment: 6.5%
Type: Conventional; 30-year fixed
PMI: Buying out upfront
State: California

Borrower-Paid
A. Origination Charges $2,746.07
0.134 % of Loan Amount (Points) $751.07
Processing Fees $695.00
Underwriting Fees $1,300.00

B. Services Borrower Did Not Shop For $7,530.45
Credit Report to S1L FBO Factual Data $84.00
Flood Certification to S1L FBO ServiceLink National Flood $9.00
Mortgage Insurance Premium to National $4,988.45
Title - Endorsements Title Company $50.00
Title - Escrow Fee Title Company $630.00
Title - Lender's Title Insurance Title Company $994.00
Title - Loan Tie In Fee Title Company $325.00
Title - Notary Fee Title Company $225.00
Title - Recording Service Fee Title Company $25.00
Title - Sub Escrow Fee Title Company $150.00
Title - Wire Fee Title Company $50.00

C. TOTAL LOAN COSTS (Borrower-Paid) $10,276.52
Loan Costs Subtotals (A + B) $10,276.52

D. Taxes and Other Government Fees $200.00
Recording Fees Deed: $200.00

E. Prepaids $1,723.74
Homeowner's Insurance Premium (12 mo.) $929.04
Prepaid Interest ( $44.15 per day) $794.70

F. Initial Escrow Payment at Closing $4,604.10
Homeowner's Insurance $77.42 per month for 3 mo. $232.26
Property Taxes ($767.35 per month for 6 mo.) $4,604.10
Aggregate Adjustment -$232.26

G. Other $2,399.00
Reconveyance Fee to County Land Trust $1,512.50
Title - Owner's Title Insurance (optional) $886.50

H. TOTAL OTHER COSTS (Borrower-Paid) $8,926.84
Other Costs Subtotals (D + E + F + G) $8,926.84

I. TOTAL CLOSING COSTS (Borrower-Paid) $19,203.36
Closing Costs Subtotals (C + H) $19,203.36

Thank you.

You could have put down less and eliminated the PMI buyout to save on cost upfront. You could have done better but you don't have any PMI and your rate is under 3% so you could have done a lot worse.

0 Votes

Originally posted by @Danette DeRose:

was wondering do hard money lenders usally charge a upfront processing fee? just dont wanna get scammed

If anyone is asking you for an upfront processing fee, there's a good chance it's a scam. Lenders are only allowed to ask for a credit report fee and appraisal fee upfront.

I don't know any HML's that ask for an upfront fee.

Run away!!!

1 Vote

Originally posted by @Steve LeBlanc:

Originally posted by @Shaun Weekes:

Originally posted by @Steve LeBlanc:

Originally posted by @Shaun Weekes:

Originally posted by @Steve LeBlanc:

Did you buy the home with cash or a HELOC?

It was a cash purchase.

As long and the cash was seasoned you shouldn't have an issue. Delayed Financing has other deal breakers, but they don't apply in most cases. Here is the list below Sir and since you're a 2 to 4 unit you're capped at 70% Contact @Jerry Padilla to go over your scenario in AL.

I hope this helps and have a good one.

https://selling-guide.fanniema...

Seasoning is not always required. At the link that you shared, there is an exception to seasoning, which I met all the requirements for:

Delayed Financing Exception

Borrowers who purchased the subject property within the past six months (measured from the date on which the property was purchased to the disbursement date of the new mortgage loan) are eligible for a cash-out refinance if all of the following requirements are met.

✓	Requirements for a Delayed Financing Exception
	The original purchase transaction was an arms-length transaction.
	For this refinance transaction, the borrower(s) must meet Fannie Mae’s borrower eligibility requirements as described in B2-2-01, General Borrower Eligibility Requirements. The borrower(s) may have initially purchased the property as one of the following: a natural person; an eligible inter vivos revocable trust, when the borrower is both the individual establishing the trust and the beneficiary of the trust; an eligible land trust when the borrower is the beneficiary of the land trust; or an LLC or partnership in which the borrower(s) have an individual or joint ownership of 100%.
	The original purchase transaction is documented by a settlement statement, which confirms that no mortgage financing was used to obtain the subject property. (A recorded trustee's deed (or similar alternative) confirming the amount paid by the grantee to trustee may be substituted for a settlement statement if a settlement statement was not provided to the purchaser at time of sale.) The preliminary title search or report must confirm that there are no existing liens on the subject property.
	The sources of funds for the purchase transaction are documented (such as bank statements, personal loan documents, or a HELOC on another property).
	If the source of funds used to acquire the property was an unsecured loan or a loan secured by an asset other than the subject property (such as a HELOC secured by another property), the settlement statement for the refinance transaction must reflect that all cash-out proceeds be used to pay off or pay down, as applicable, the loan used to purchase the property. Any payments on the balance remaining from the original loan must be included in the debt-to-income ratio calculation for the refinance transaction. Note: Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan.
	The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value).
	All other cash-out refinance eligibility requirements are met. Cash-out pricing is applicable.

I know that and that's why I asked about if you bought the home cash. I figured you'd qualify for Delayed Financing and I sent you a contact that gets the job done. You're welcome :)

3 Votes

Originally posted by @Steve LeBlanc:

Originally posted by @Shaun Weekes:

Originally posted by @Steve LeBlanc:

Did you buy the home with cash or a HELOC?

It was a cash purchase.

I hope this helps and have a good one.

https://selling-guide.fanniema...

0 Votes

Originally posted by @Steve LeBlanc:

This is a venting post, so please bear with me.

I just spent 60 days in underwriting with Mutual of Omaha, Chesterfield MO only to be told today that my credit request was denied for "unable to verify income" and "cash out refi with less than 6 months ownership".

Now, this wouldn't surprise me at all if I was self employed or I hadn't told the broker on day one that I just bought the property and asked if there were any seasoning requirements...to which he replied "no".

After financing investment properties for over 14 years, I've yet to come across a lending team that actually had their ducks in a row and really knew how to process an investor's file.

Delayed financing on investment properties with borrowers who are seasoned, cash flowing, solvent and top shelf should not be rocket science....yet it always seems to be the most difficult thing these lenders have ever come across.

Brokers and underwriters don't have a clue how to deal with investors (within Fannie/Freddie guidelines), change my mind.

And, who has the best terms on delayed financing for a 4 plex in Alabama?

Did you buy the home with cash or a HELOC?

0 Votes

Originally posted by @Kirsten Milliken:

I just called my mortgage company to inquire about refinancing my mortgage and was told that lenders are not giving loans to anyone who is self-employed due to the pandemic. This is ridiculous! My income has remained strong and is even more than last year! I work in health care.

Has anyone else found mortgage companies with good rates who will work with self-employed investors?

The statement made by the lender is incorrect. Fannie Mae and Freddie Mac are still buying loans with borrowers who are self employed. You have to jump through some extra hoops but its still a go if you qualify and meet the new guidelines.

Most lenders are now asking for 3 months of business bank statements and a P&L verifying the monthly averages of previous years income. Example; 2019 you showed 120K in taxable income, so your P&L should reflect 10K or more a month and those 3 months of bank statements should support the P&L. Lenders also have different requirements depending on your entities structure so be sure to go over this with your broker or loan officer.

I hope this helps and have a great day.

2 Votes

@Alex Bekeza

What is your minimum loan amount and do you do business in IN?

0 Votes

@Henry Lazerow

18 million does the talking!

0 Votes

Chicago, Illinois

Originally posted by @Ana Garcia:

Does anybody knows where I can search for one? I need it for part time only!

Hello Ana,

What state are you doing business in?

0 Votes

All Forum Posts by: Shaun Weekes

Shaun Weekes has started 33 posts and replied 1673 times.

Post: Not enough rental history causing DTI issues...Advice please??

Post: Are my mortgage rates and fees too high?

Post: do hard money lenders usally charge a upfront processing fee ?

Post: Mortgage Brokers are Clueless

Post: Mortgage Brokers are Clueless

Post: Mortgage Brokers are Clueless

Post: What's a self employed person to do?

Post: Cash Out Refinance up to 75% LTV - 30 yr fx, LLC ok, DSCR Based

Post: Would you be OK if your realtor had full sleeve tattoo?

Post: Im a realtor and I’m in need of a virtual Asistant?