All Forum Posts by: Shaun Weekes

Hi,

I am a still a small time investor and still work my W2 while I try to build a portfolio. I am currently running into an issue with some lenders which prevents me from acquiring financing. I own an investment property, but not a primary residence. The issue is, I am on the deed to my parents' primary residence, but not on the mortgage. I have reached out to a number of lenders and brokers, and I am being told that they are required to count my parents' mortgage as a liability against my DTI, which prevents me from getting another mortgage. I find it ridiculous. I understand that I am liable for taxes and insurance because my name is on the deed, but not the mortgage. Additionally, Chase bank tends to agree with me as they had absolutely no problem qualifying me for another mortgage, but Chase doesn't want to finance anything that has dry rot (which any discounted property will have) due to it being a health issue. Needless to say, Chase won't finance anything I want to buy.

My mortgage broker suggested either taking me off the parents' deed (which I don't want to do at this point) or providing 12 months of bank statements that my parents have been paying mortgage out of their account without my name on it (which I am unable to do because of certain arrangements with my parents).

It would be great if a lender or an experienced investor could chime in and let me know if there are other alternatives to deal with this as I have already found the property that I want to purchase.

Thanks

hi

have a great deal - will be my dream property in that I plan to rent out until I retire in 5 yrs and the HML missed the close - not even sent a package to the closing attorney by the date. Jumped through all of their hoops and paid expedited fees to process and now they are MIA. what recourse do I have with my EM with them or in general since the Seller walked.

I got a contract on my first rental property two weeks ago. Duplex. I intend to live on one side and rent other side out. I was pre-approved by a mortgage company. Everything was going fine after it was under contract, and I had gone through several days of emails with the mortgage company concerning points/interest rates/down payment amount. We agreed on 3.125% conventional loan, 5% down. Everything seemed fine. Today at 4:45, I get a call from the mortgage company saying that “corporate” is now requiring 15% down because this will be an income-producing property. The fact that I will live there is irrelevant. I had been dealing with the same guy all along. He said he was confused by this, as no one in the company had any concern about this In the previous days. He couldn’t tell me why it now was a concern.

Does any of this seem normal? Is it normal for a mortgage company to not do 5% down on an owner occupied duplex?

I have no problem making calls to other mortgage companies on Monday, but if I ask here first and find out that this is totally normal, I won’t bother.

Thanks everyone

My wife has been self employed since July 2019, and before that she had a W-2 job in the same field. I want to get a handle on what our DTI will look like next year because we want to buy another multi-unit.

She has one tax return with half self-employed and half W-2, and once we file next year a full year of self employed. When an underwriter is calculating her income over the past two years will they include the half year of w-2 income or just the self employed income?

Hi everyone, 

I was recently approved for a cash-out refinance on my 15 unit apartment complex. The appraisal for the property turned out surprisingly well and the property was valued much higher than what we anticipated. The terms are 5/30 balloon at a good interest rate. The bank approved us for an extra 100k more than what we originally asked for (at 65% LTV). The cash-out will be used to payoff hard-money loan and rehab cost on a 2nd property that we recently acquired and nothing left. The 2nd property will be held cash for now and we can always refinance later.

The dilemma that my wife and I have right now is should we take the extra 100K?

     Pros: extra cash in hand for a 3rd deal; low interest 

     cons: balloon in 5 years, higher mortgage

If this refinance was 10/30 then I would like it better. Any advice would be appreciated. 

Thanks,

I'm in the process of combining 5 of my investment properties (currently individually mortgaged) into a portfolio loan.  Is the interest paid on this new portfolio loan deductible just the same as the mortgage interest on the conventional loans?

Hi everyone,

Last time I bought a property was in 2019. Back then the minimum I needed to pay was 15%. My lender is telling me that's over and now the minimum is 20%. Is this a Freddie/Fannie rule or is this an overlay? Does anyone know?

Hello . Does anybody know...Does finished basement adds value when applying for cashout refi? 

1) does it add to overall house sf?

2) if I add 2 bedrooms in finished basement do they count and add value?

My basement 1000 sf  is below grade with small windows. It is 7 feet high finished basement remodeled with wide plank wood flooring, drop ceiling and gypsum boards, heated withbaseboard heaters hydronic. 

thanks for input.