All Forum Posts by: Tommy Barone

So the hardship refi was ten years ago. They sent mailer out because I believe there's a timeline with HARP. The resulting rate is 4.5, compared to 5.25. The PITI is $100 less and the remaining note is the same amount of years owed.

Currently having another lender friend of mine run a report to see if they can do the same streamline for a better rate. If not, still a seemingly decent deal.

It would be for the same exact 20 years I have left, yes this loan was originally modified in 2007 during a layoff in hardship.  

The investment comment was because if it was an owner occupied required loan refi, if I find an investment property that I want to purchase this year I won't be able to use an owner occupied FHA (for example) loan for a new property, because I would have another owner occupy loan out there. It would be hard to prove otherwise - Just makes it easier and more legit and for 1/4 of a percentage more it's worth it to me.

@Melvin List is that because it's not actually my broker offering it, so technically, I can just shop around and ask anyone since it's federally qualified?

Hey guys, need help since it's the weekend and need to figure stuff out by opening tomorrow am...

My lender (PNC) called to let me know I can streamline refi my existing mortgage based on, I believe, some kind of expiring HARP option. They said my mortgage PITI would go down about $100/mo based on refi as an investment property (in case something else pops up that I want to buy) and the approx $1200 closing costs would be rolled in, still saving $100/mo PITI.

What is this all about?

Is it legit or a marketing thing?

Will that $1200 CC cover all the attorney/title fees?

Will I be marked as a modified/delinquent loan?  

Will this affect my ability to get a loan soon after for another [investment] property?  

Sounds like one of those credit card or refinance flyers you get in the mail.  Every month.  I was told that we need to hurry because the program ends right around when the closing would happen since it takes about 2 months they said.  I should also note that 10 years ago I had my mortgage modified due to hardship.  That's "off my record" now.  

 Hi Greg,

Yes I understand no money down isn't an option, but didn't know if there were banks that might have an in-house portfolio option that people know of, that could work with the right situation for lower down than 15-25%.  I should clarify, I'd owner occupy the studio portion.  

I'd likely try to save FHA for a future bigger (max 4) property that I'd occupy once I rent out any previously property (after a year of owner occupying that) to stay legitimate.

Looking for options on mixed use property. It's a single family with attached business, which can be converted easily to a MF by turning it into a studio. It's zoned as mixed. Bank says no to 5% conventional and would even be difficult to go FHA. Not a big fan of $7K MIP up front, and lifetime PMI, but I'd do it for the right situation. I feel like I'd rather save FHA for a quad or something, where the 3.5% down would be worth it.

Any other options?  Bank said no to in-house portfolio for that little down as well.  I'm guessing all banks will face same underwriting issues for that type of property?  

This is in RI.

Takeaways from meeting: (To clarify, I'm looking into rental properties before my personal home)

I have a home already so I can't use first time homebuyer.  My income allows me to continue on even with that mortgage.  

The only way to go for low down payment is FHA. Downside is that, as you all know, you have to buy into the PMI (for a cool $7K based on $410K), and then pay .85% PMI for the life of the loan on top of that.

Seems like the Freddie Mac has an income limit of about $71K, but he's looking into it - I'm over that cap.  

From the investor standpoint, It didn't seem like there was a way to get another low down payment option after I own an owner occupied low down payment home, even if I live somewhere else later.  Underwriter won't buy it, and I've been led to believe that I'll only ever be able to get another investment property by putting down 20% for Single, or 25% for Multi.  I feel like I have a lot of BP reading to do because I feel there are more opportunities than that going forward.  

So...I can pretty much qualify for whatever I want, but after this one purchase, it seems like it's going to be difficult for future investment purchases with little cash, as far as the bank lending side of things. 

Amazing guys, thanks for that great advice!

Amazing guys, thanks for that great advice!

I'm looking to start the investment process so the first thing I did was talk to a person that I knew that works for a lender in Rhode Island. It's a bank that many people have had great experiences with.  After running the numbers based on my financial situation, he told me I'm essentially able to afford whatever I want depending on the loan program. I guess that's good news to start and he wants to meet with me Monday to discuss loan programs.

I just paid off all of my debt so my cash on hand is growing slowly from scratch.  Looking Ultimately for home to live in strictly residence and family eventually, but in the meantime looking to house hack or find investment opportunity. 

My questions to the community are:

My real estate agent who is a close friend of mine wants to talk to him directly, is that normal? 

What should I be prepared to ask - what kind of questions besides having my safe zone numbers ready to go?

What should I tell him? 

[If get into something that's costly, will I still be able to borrow from him if something else pops up] , that kind of thing? 

What questions are geared towards someone wanting to get into multi family and investing, owner occupied financing options, low down payment options, OPM, etc.

Are there are deal sweeteners that I can offer?