All Forum Posts by: Tyler J.

So I called Fannie Mae directly and what the lady I spoke with told me is I need to talk with my Mortgage holder/bank.. She said they are the ones that will allow me to sell the house without and penalties..

0 Votes

Bump... Getting close to listing.. Very broke, but afraid to sell house...

0 Votes

So long story short, I bought a house a few months ago that I did intend to live in when rehab was complete. Well one thing let to another and I ran out of money and borrowed a little from family to finish the house. Now it's complete but Im in quite a bit of debt in many ways right now. If I were to sell the house I could pay it all of and make a little profit once its all said and done.

My question is, when I bought the house I signed papers saying that I was a owner occupant and was going to live in the house. Am I going to have problems selling? I did intend to live in the house, but just cannot afford/justify it now.

Thanks!

0 Votes

Hello I have a question. I bought a house for $40k and put about $20k into it. I'm positive I can sell for no less than $79k for about a $19k profit before taxes, fees, commission etc. Well I put a lot more money into the house than I anticipated and now don't have much money in saving, which I don't like. I have not moved into the house, I live with my brother but planned on moving into the house when it was complete. I have owned it for 3 months now but have not moved in.

My question is under section 1031 do I qualify if I purchase another home within 60days and do the same thing, but actually move into this one, or does that qualify as a "like kind" exchange and I will still owe the taxes?

Thanks

0 Votes

Anyone from Illinois familiar with a State version of the Act? I'm really trying to look into seller financing but cannot find a Illinois version of this Act from a basic google search. Could be that the state hasn't intacted one so the Fed version takes place.

Thanks in advance!

0 Votes

Originally posted by Jon Holdman:

The basic qualifications are roughly:

For mortgaged properties 2-4:

25% down payment, based on purchase price or appraisal, whichever is lower. Maybe 20% for some lenders.
6 months PITIA (A= anything else like and HOA or MUD) for the new loan plus 2 months PITIA for existing properties
680 or so mid credit score
DTI < 45% or so. DTI is all debt payments, including the new mortgage, any existing ones, and all other debts that have more than six (?) payment remaining. Income is your gross income. Generally, rental income will not be counted until you have two tax returns showing rental income.

Once you have two years land lording experience, you may be able to include the income on the new property. "Net rental income" is estimated at 75% of the rent less the PITI payment. For existing rentals, they will want to see your tax return.

DTI gets a little complex with rental. Start by ignoring both the rental income and the rental mortgages. Add up all your other debt payment, including your primary (its nothing but a liability.) Add up all your income. Again, you're ignoring rentals for both of these numbers. Now, add in the rentals. For the existing ones, look at your schedule E. Income is line 22. Add back depreciation from line 20. That's your real income or loss from the property. If its positive, add it to the total income. That improves your DTI. If its a loss, add the amount of the loss to your debt payment. That hurts your DTI. For the new one, use the (75%*rent)-PITI to figure the estimated income or loss. Add a positive amount to income, add a loss to the debt. Now figure your DTI.

For properties 5-10, you'll need a higher down payment, a higher FICO, and six months PITIA for all properties

After 10 you're looking at commercial financing. Only a few banks will do this, but they are out there. You're looking at slightly higher rates and shorter terms. 15-20 years.

When you talk about PITIA, do I just need to have the amount to cover the PITIA in the bank?

0 Votes

Originally posted by Lori L.:

Excellent credit, enough income to cover all mortgages at the same time, and cash down payments were my ticket . They won't count my rental income until I have two tax years proven history.

I talked with several bankers to determine what would work best for my scenario.

How did they estimate covering your motgage with your regular income? How did they figure what your mortgage amount for the new houses? Did they add in your other bills and such for your primary home?

0 Votes

Is it possible to do this?

Example- Buy a house for $40k. Cost 10k to fix it up, then house appraises for $90k. If you put down 20% on the original loan, then you have a loan amount for $30k on a house worth $90k. Can you refiance is or take a heloc on the ARV of the house?

0 Votes

Hopefully not a stupid question. How is everyone getting there mortgages for rentals? What are they using to qualify you? Good credit obviously.

I guess why I'm asking, I just purchased my first home. I plan on living in it for a bit to start, eventually use it as a rental/flip. I have 20-30% for a downpayment for another house for a rental/flip as well. But I dont know if I can get another loan?

Basically looking for any information to do with this LOL.

Thanks in advance..

0 Votes

Wouldn't it show more income on a payed off house though? Get a extra $350/month from not having a mortgage?

Plus couldnt you use the payed off houses for like collateral for other houses you plan to purchase?

0 Votes

All Forum Posts by: Tyler J.

Tyler J. has started 10 posts and replied 32 times.

Post: Selling House and signed Fannie saying Owner Occ??

Post: Selling House and signed Fannie saying Owner Occ??

Post: Selling House and signed Fannie saying Owner Occ??

Post: Section 1031 Tax Question

Post: Safe Act in Illinois?

Post: How is everyone getting so many loans?

Post: How is everyone getting so many loans?

Post: Buy a house, fix it up, refinance loan for what its worth after?

Post: How is everyone getting so many loans?

Post: Paying off rentals early