All Forum Posts by: Shaun Weekes

I'm not an Investing expert but I do know that adding those items ( especially the plumbing and boiler ) will make a residential real estate appraiser not ask to do a 442 or 1004D if a buyer is looking to buy with a conventional loan.

A 1004 D or 442 means that the appraiser is saying something isn't up to par per fannie, fha or freddie guides and he/she will return ( at a cost ) when the items are done.  If the items aren't complete then the lender might not accept the appraisal. 

Did you include your investment property on your schedule E and if you did did you claim a loss?

If so that could be the problem but if you didn't claim a loss it doesn't matter that you have less than 2 years.  Fannie doesn't require rental history but freddie does require two years.

If it's items that Fannie Mae or Freddie mac or the FHA require like double straps on a water heater and running water and co 2 detectors and something covering the floors ( carpet or tile ) then it's a must if you want buyers who have to get regular conventional financing.

If it's a cash buyer it doesn't matter but you would sell it for less because the items aren't completed.

So spending a couple of hundred dollars will help you sell your investment to a larger pool of buyers.

Maybe adding A/C or redoing the the kitchen and bathroom might cost you 5 -15K but if you can sell the house for 30-45k more after repairs it's a great investment.  I guess it just depends on how much you want to put into it :)

I went off track and didn't read this one completely through and through.  Kristine it looks like the mother and the son are on the mortgage. 

So here is another solution, if the G parents qualify for the mortgage and you add them to title they can refinance after six months.  The mother can also do a gift of equity sale to the parents so that they don't have to qualify for the entire sale price.

The mom could also refinance the home with the G parents and that would take Jason off the loan as well. 

Hello Josh,

Why won't they consider you for a conventional loan? You only have two mortgages right?Now so unless your DTI is too high you shouldn't have an issue with qualifying for another one.

Can you give more details because it sounds like you should be ok. 

@ Lynn

Looks like you can be removed from the mortgage as if the other signers qualify for the mortgage. 

Lynn thank you for pointing that out. 

Lynn M,

I'm doing some research and so far I've found out that you can get off title.  I'm seeing if you can get off the mortgage as well and in that case I stand corrected. 

I will post about the mortgage as soon as I get confirmation :)

Hello Tasha,

Laura pretty much broke it down for you perfectly. 

Hello Mark,

When you say multi unit do you mean 5 or more units?  If it's 4 or less here is what you're looking at.  Freddie Mac will only allow 4 financed properties max.  However Fannie mae will allow up to 10 financed properties but here is how it works.  If you have more than 4 financed properties you can only do a cash out refinance refinance if you've had the next property for less than 6 months on financed loan numbers 5 to 10.  This called delayed financing.  There are other guidelines you need to follow but they're very simple.

So in your case assuming that one of your unit properties are 4 units you could still do a C/O refinance on that home. 

On your 5th financed property you could only do a rate and term refinance unless you qualify for delayed financing.

So if you C/O on your unit and buy another home cash and then take 3 months to fix it up and then decide to refinance it C/O that is fine. But if it take 7 months to fix it up then you would have to get a HML. After the HML is completed then you could do a rate and term refinance on that 5th property.

You should have been able to get more LTV unless your DTI was too high.

Jason,

If your grandparents qualify for the mortgage themselves and refinance under just their names you would be removed from the the loan and title.  So if this is possible I would go that route.

If you have you have 5% percent to put down you can also qualify for a conventional loan as long as you show that your grandparents have been making payments ( which they have ) with 12 months of cancelled checks or 12 months of their ( grandparents ) bank statements.

In this situation if the G parents qualify for a refinance that would automactically take Jason off the loan. 

Homepath is really good and regular conventional also does 5% down

Streamlines are great but the only issue in this scenario is if you do one all the original people on the original loan would have to be on the streamline as well.