All Forum Posts by: Shaun Weekes

Your best bet for this type of deal is to contact a small bank in the county your property is located in. They will be used to working on loan amounts in the range that you're requesting. This would also be a great time to let the bank know what you're looking to do and develop a relationship with them.

0 Votes

Toledo, Ohio

Quote from @Max Moncur:

My wife and I have been looking for a home in the Sacramento, CA and east bound area to house hack in and were hoping to use an FHA loan. We've put in a few offers and on the last one even raised our offer significantly to hopefully compete better for a home setup we really liked. We haven't had any luck so far as it always seems there's an all cash or conventional loan buyer.

So my question is, are there any suggestions on how to make an FHA loan look better than just offering way over reasonable price? Or is this just part of using an FHA loan and the current market and we just have to hope we get lucky one day? Thanks in advance for any tips!

PS - we've tried writing letters to the home owners and a few listing agents have told us they wont show the letters to them due to discrimination laws...

One of the best ways to get an offer looked at and accepted is getting a fully underwritten approval. The mortgage bank will underwrite your C.I.A. (Credit, Income and Assets) and when this is done your realtor can reduce your loan contingency (It's already been completed and approved) which makes your offer much more solid. All you need at this point is a home that will appraise "as is" and that has clean title. At this point you should be able to close in 14 days or less. Seller’s agents love speed and with a buyer that is fully approved your offers will hold much more weight.

I hope this helps and have a good one.

0 Votes

Sacramento, California

Quote from @Allen Parker:

Recently learned about this program was going to speak with one of the preferred loan officers available on their website but figured id send some feelers out here first in the bigger pockets community. So please, any lender out there with knowledge (or the ability to work with this) reach out to me! Love to use a biggerpockets member verse a random person!

I get bulletin updates from CalHfa to stay in the loop. The program is being paused as they will most likely have funds used up by the next week.

Here is the exact verbiage from CalHfa.

I hope this helps and have a good one.

Program Bulletin #2023-03

CalHFA to Pause the Dream For All Shared Appreciation Loan

CalHFA anticipates that all funds currently available for the Dream For All Shared Appreciation Loan could be fully committed as soon as April 10, 2023. However, all loans must be rate locked no later than 3 p.m. PST on April 12, 2023, or when the available funds become fully committed, whichever is sooner. Loan files that do not have rate locks by that time will not be funded. Loan files attached to floating reservations are not committed and will be cancelled the day after the program pauses.

For all the details please read Program Bulletin #2023-03 - CalHFA to Pause the Dream For All Shared Appreciation Loan

Additionally, CalHFA is aware that some homebuyers are experiencing backlogs with the one-on-one counseling portion of the Homebuyer Education requirement and has worked with eHome America to address this issue by adding more than a dozen additional housing counselors, and prioritizing appointments by closing date.

1 Vote

Orange County, California

Quote from @Jacob Northfield:

Hi folks,

I recently closed on a duplex in Rochester, NY which I was planning to househack. My plan was to move in June when the lease on my current apartment was up. Unfortunately, my sister died unexpectedly a couple of weeks ago and our family is in NH. She was previously living at my mother's house while my mother is living elsewhere. She left behind three children and I would like to either gain custody or help my mother raise them in our family home. I have a couple of questions on how to best make this happen. To preface this, my duplex assessed at 175k and I purchased it for 152k. My mother's house assessed at approx. 400k but she is willing to sell for 300k. I can only afford about 2,100 in rent, though, which doesn't seem to be enough for this property with today's interest rates. What is the best way for me to handle my duplex and finding a way to move into her house while putting it in my name? Basically:

1. What do I do with my duplex? I just bought it last month and have not had an opportunity to rehab because it's currently rented out so I'm not optimistic about selling. I was thinking I could fix up the one apartment and keep the current tenant in the other apartment then manage it long distance, but that would deplete my cash flow and possibly cut into my cap ex at the moment. Initially I was going to focus on MTR which would compensate, but I'm not sure how difficult that would be from NH.

2. How do I buy my mother's house since I have just signed on a mortgage? She has only a HELOC, no primary mortgage, but the house needs a lot of work. My goal wouldn't be to flip it, but to add an in law apartment in the basement so both my mother and myself could live there in separate units, one of us with the kids. I don't know much about creative financing but I'm willing to do the research, I mostly need a point in the right direction for this one, I think.

Thank you in advance for your help.

I'm sorry for your loss.

If your mom puts you on title then you will own the home with her. Pay the HELOC payment out of your personal account. After 12 months you'll be able to do a cash out refinance with Fannie or Freddie if you qualify. Use the HELOC as best you can to fix up the property.

I hope this helps and take care.

1 Vote

Quote from @Dror Brumer:

Quote from @Shaun Weekes:

Overall you're in a good position after a refinance. 367k cash available and when rates go down again you can lower you payment and turn that small negative into positive cash flow.

For sure get out of that interest only loan based on what you've posted.

The next time around will be easier and more profitable as long as you continue to do your research.

Take care and I hope this helps.

0 Votes

I bought the house in a cash deal, so paid 367K (100% down) from my HELOC account. the loan amount today is 255K

I bought the house a year and 2 month ago - it is a SFR house

If your C.I.A. (Credit, Income and Assets) is solid you should be able to cash out 75% of the appraised value or 300k since you mentioned that the home is worth 400K. You can go about this with Fannie and Freddie since you have more than 12 months of ownership interest or a DCSR type loan if your D.T.I. (Debt to Income Ratio) won’t cut it. This is guessing that this is a long term hold of course. If it's not then I would just leave it and sell 12 to 24 months from day 1 ownership to the end of 2 years.

I would pay off the HELOC so that you can complete the BRRRR. What is the current rent on the property and during your rehab did you work on everything that needed to be fixed up? What is the rate you're being quoted on 300k?

BP. I'm not looking for business, I'm walking the investors through the process so that they can get to the final (R) Repeat.

0 Votes

Quote from @Adam Soyak:

I have been informed by my loan officer that we no longer have the option to cash out refinance our rehabbed properties at the typical 6-month seasoning. It has changed to 1 year. I am looking at other options to get the money out of our deal in the next 4 months, and want to see what others are experiencing. I would like to avoid hard money, but open to other options. Thank you in advance!

I touched on this earlier this week so hopefully the post link and the information attached to it coupled with additional responses helps you.

Take care and have a good one.

Information on getting cash out earlier

2 Votes

Chicago, Illinois

Quote from @Dror Brumer:

Hi All ,

I have a rental property I bought with LOC , The LOC rates are very high and I was thinking to take a mortgage on the house with a cash out option to invest in one more property

When I am running the numbers the mortgage rates will eat all my cashflow ( getting a negative of $68 a month instead of $200)

House cost 367K - House estimation 400K - current loan amount is 255K - looking to barrow 300K at the new loan

What am I missing or is it due to the mortgages high rates ?

How long have you owned the home?
How much did you put down on the home?
Is the property and SFR or 2 to 4 unit?

This additional information will get you more answers.

0 Votes

Quote from @Julian Chavez:

Hello. I just purchased 3 properties from a wholesaler and looking to do a cash out refinance. Does anyone know of any lenders that will go off LTV after just 3 months from purchase? Rather than the full 6 months.

If you bought them cash, you could get your money out the next day via delayed financing if you qualify. Many DSCR lenders will also give you cash back even if you have a mortgaged property anywhere from 3 to 6 months of seasoning depending on the lender.

Moving forward Freddie Mac is now 12 months of season for cash out due to their guideline changes earlier this week and Fannie Mae changes don't officially take place until April 1st. Plan your BRRRR's and or cash out refinances accordingly moving forward. As with many things in life there's exceptions to the rules so make sure that you contact a Mortgage Broker or Loan Officer who is well versed in the loan type that you're looking to execute.

As usual I have attached guidelines for your information.

I hope this helps and have a good one.

Delayed Financing Fannie Mae

Freddie Mac C/O guidelines

Fannie Mae C/O guidelines

0 Votes

Miami, Florida

Quote from @Laura Hildreth:

Is it typical for a HML to request we fill out the loan application form on our website and provide the fee($1200) immediately after filling the form to our account officer for processing and documentation of the loan registration process?

The only thing you should be paying upfront for residential loans is the appraisal fee. And that is paid to a 3rd party A.M.C. (Appraisal Management Company) You might get a lender asking for a credit report fee as well and this is acceptable. On the Commercial end it's rare but I have seen legitimate lenders charge upfront nonrefundable fees. Those fees are allocated to the appraisal, environmental reports, and legal fees so it's a much easier pill to swallow. Don't pay for the appraisal with this company and find one that won't charge you upfront fees less the ones I mentioned. BIG RED FLAG!!!

0 Votes

Las Vegas, Nevada

All Forum Posts by: Shaun Weekes

Shaun Weekes has started 33 posts and replied 1673 times.

Post: Cash-Out Refinance Commercial Property

Post: How to Compete with a FHA Loan

Post: California Dream for All Program

Post: Purchase family house after sister died?

Post: Question about. BRRR

Post: Question about. BRRR

Post: BRRRR at 6-months has been ELIMINATED???, now only 1-year option??

Post: Question about. BRRR

Post: Cash out refinance seasoning

Post: HML Requesting pay points prior to finalizing loan?