All Forum Posts by: Shaun Weekes

Hello Ronnye,

As long as you have been in the same industry you're going to be fine.  But when you start the mortgage process don't leave any of your current jobs.  Remember don't leave your job in the middle of a purchase or refinance.

You can count 75% of the rents from day one.  the 2 year rule only applies to Freddie Mac products.  Fannie Mae doesn't care about rental history.

I hope this helps and have a good one Sir.

Hello Tom,

You have 2 options for conventional financing.

If you have less than 4 mortgages you can get a cash out refinance on new appraised value at the 6 month mark. If you need to get the cash out before that you're looking at 75% LTV ( Loan to value ) for an sfr and the ltv will go down from there depending on the units etc. The 75% is based on the purchase price or appraised value, whichever is lower.

Option 2

If you have 5 or more mortgages the only way to cash out will be through delayed financing. You're going to need a 720 minimum fico and at least 6 months reserves on all other investment homes with mortgages. You only have 6 months to cash out and that 6 months starts the day your loan records. The max LTV is 70% and goes down from there depending on the units etc.

There are other restrictions as well for delayed financing so make sure that you consult a loan officer or broker that has experience in the Investment home loan field. This is key and in my opinion a must.

I hope this helps everyone.

Daniel,

If you're in the same line of work and the income works then you won't have a problem with financing. When you go from W2 to self Employed it gets really tricky but can be done as well.

It's really important to hook up with a loan officer or broker who uses banks that don't have overlays. I see this all the time on BP and investors get frustrated.

One of your first questions should be. DO YOU HAVE ANY OVERLAYS :)

If they don't then this will be a huge leap forward for you. And it will make the entire situation less stressful.

Oh I forgot to mention to keep a u.s. property address.  This is also key :)

Hello Antonio,

If you're a citizen and you still file U.S. tax returns then you won't have any problem buying investment properties.  That is of course if you fico and down payment is acceptable.

You can sign your documents at the U.S. embancy since they all have a notary on stand by. 

Now if you're not a citizen but you have a work permit or a visa ( there are many visa's that conventional financing will allow ) you can still get financing. 

The key is to have U.S. tax return income, if you don't have this you won't be able to get to qualify for for conventional financing.

HM is a whole different animal and I'm sure you can find it if you don't qualify for private money.   

I don't mind driving out there to meet up.  Just let me know when it's going to be.

Kunal,

You can personally have up to 10 financed homes based on Fannie Mae guidelines.  And if you want to get creative your wife can have 10 as well so you could have up to 20 if you really wanted to.

The key in my opinion is to get with a loan officer or broker that really knows what he/she is talking about.  Someone that knows the guidelines in and out so that you can benefit from that knowledge. 

-So just as a recap and individual person can have up to 10 mortgaged properties under their name. 

-Get in touch with a loan officer that is seasoned in Non Owner ( investment home ) purchases and refinances.

-If you're going hard money there is no limit as to how many homes you can have.  The 10 home rule is a fannie mae thing and freddie mac will only allow you to have 4 mortgaged properties

I hope this helps and good luck Sir.

DU ( desktop Underwriter ) this is fannie mae's automated underwriting system

LP ( Loan Prospector ) same thing as about but for Freddie Mac.

Brant,

On an SFR you can get LPMI ( lender paid mortgage insurance ) so you're still paying mi but it will be built into the interest rate. So yes your rate will be a little higher but it for sure is less than FHA.

To expand on what Hattie is saying you want to stay away from banks that have OVERLAYS.  This is a bank that adds their own guidelines to whatever program you're looking for.  Banks that don't have OVERLAYS big or small will UW to what DU and or LP give them. 

I hope this helps.

Hello Mike,

Your broker should have know that 1040's and W2's for the last 2 yrs are mandatory unless you're self employed.  In which case Freddie Mac will only ask for 1 year of tax returns in most situations.

What the other Gentlemen meant by 10% would be the interest rate that you would have to potential pay on a private money note.  He wasn't talking about how much of the property you own.

The following is just my opinion but I used Turbo Tax for four years and the last two years I used a CPA.  He found thousands of dollars that I had no clue about and amended some of my taxes from years previous which got me my maxim return. 

I personally will never use turbo tax or any software like that again because at the end of the a really good CPA will be able to help you save money or structure your taxes the way you want them.  And he/she will always have a copy available for you as well. 

If you order your 4506 ( full photo copied 1040's ) make sure you order your W2's as well.  The UW will most likely want both to match up numbers.

Finally you're going to need a really good loan officer or broker in the future because UW have a job and that's to follow DU and if they have OVERLAYS those too.  Some banks just follow DU or LP like mine but not all banks.  I know it's frustrating but you're so far into the process ( you've ordered appraisal etc ) that you might want to stick with them.  Make sure that your appraisal is going to be good with them for the next 60 days because it could take up to that long to get those 4506's from the IRS.  And don't have your credit pulled or buy a car or anything like if you're going to stay with this broker.  You don't want your credit scores to change or fall and most likely they will have to pull another report because your current one will expire with them in 60 - 90 days.

Take care and good luck Sir.  I hope some of my words help :)