All Forum Posts by: Shaun Weekes

Hello James,

The PP is probably pre payment penalty ( which a lot of lenders don't do any more ) and I agree with Bryan A. that you should find another lender.  This seems really high and you can find someone that will do this with no Pre Payment Penalty. 

Hello Ross,

In order to be able to refinance this home you'll need to do two things. 

Add yourself to title

Pay the mortgage for at least 6 months and prove this with cancelled checks.

However Texes has some strict rules about cash out refinances so if you're going to do this make sure you do some research.  Make sure that the bank is participating in Texas Equity ( a ) ( 6 ) and go from there.

If you want cash out the other option is to get a HML ( Hard Money Loan ) and then turn around the day after and do a conventional loan Rate & Term.

Oh and like Gualter said make sure the numbers work.

Keep us posted and I wish you luck and Welcome as well.

Hello Mike,

If it's a 2 unit property you can put down 15% ( Fannie Mae ) and if you have 2 years of experience you can put down 20% on any type of unit with Freddie Mac. 

The only other way is to refinance your current loan out of an FHA loan and then move into the new unit property with an FHA loan.

If you have any other questions please feel free to ask or PM me. 

Take care and have a good one. 

Hello Kelly,

Pm me if you have any questions that I can help you answer :)

Hello David,

This is absolutely possible with conventional financing.  You can do this through Fannie Mae and it would need to be put together as follows.

Example:

Say each home was selling for 100K and you're putting down 25% on each one. 

75K at 4.75% = $391.24 and let's say taxes and insurance bring the payment up to $550.

Lease agreements are all at $750 and you can use 75% of this income immediately.  So $562.50 - 550 = $12.50 x 7= $87.50.

If you're making 2K per month now you can show $2,087.50, I know this example doesn't show a lot of income but plug in your numbers and see what you come up with.  This calculation is used because you don't have any schedule E income.  If you did it would be a different calculation.

Debts / $2,087.50= your DTI which is a large factor in conventional and government loans. If it comes in less that 43% that is a safe number. However I've seen and have loans that are currently approved at over 47%. Remember that your debts are only those that show on your credite report. Credit cards, Car notes, mortgages, personal loans etc.

I hope this all helps and HMU if you need anything in the future :)

Hello Ryan,

Miriam was pretty dead on and I would just like to add that if you can put down at least 5% you can get a LPMI ( lender paid Mortgage Insurance ) loan and the MI ( mortgage insurance ) will obviously be a lot lower. 

FHA loans are great but why are you specificly looking for this type of loan? Since you're looking for an FHA loan I would have to think that this is a primary residence. Or is this a unit property and are you thinking of moving into one? GIve us some more info and I'm sure you'll get good advise from multiple people.

@ Miriam

When I first moved to california from Canada My home for 3 years was Santa Clarita.  How is Valencia these days? PM me so we don't mess up this young mans thread :)

Hello Ron,

If you'd like and can help as well.  Take care and good luck.

Ok that makes sense.  So I"m gathering that you're looking to put down 10% as opposed to 20-25% because this will be labled as a second home?

If you can afford to put down 20-25% depending on what type of property it is you'll be able to write a lease agreement for the person that is going to be staying there anyway and use that rental income right away. 

This seems do able you just need to have someone structure it properly. 

Hello Jennie,

In regards to your credit report you're not required to pay this.

In regards to pre paids this isn't an upfront fee ( The only thing you can as for upfront is the credit report fee and appraisal fee.  That's it ) it's most likely 2-6 months of your taxes and insurance being escrowed or impounded which depending on the type of loan you're applying for may be required.

In regards to multiple postings by the same person that is really shaddy. 

In conclusion are you buying a rental property  or primary residence or doing a refinance.  If you can give me some more information I can give you my opinion on how to move forward.

I hope this helps and good luck Jennie. 

Hello Michael,

Based on the information that you're providing you're looking at the following. 

$1,375 x 43% = $591.25-$200 = $391.25

Your DTI could go up as high as 54.9% for FHA so if you do the calculation that way you'd qualify for a larger loan amount.

It all depends on how much DU ( Desktop Underwriter ) likes your profile. 

Again it could be more or less depending on numerous factors like trade lines, credit lates, reservers ( FHA doesn't require reserves but having them will help if your DTI is higher ) Etc.