All Forum Posts by: Torrell Palmason

Fannie/Freddie are 15% down on a single family non-owner occupied and 2-4 units are 25% down. This is the same if it is your 1st deal or 100th deal. Just get with a lender that follow Fannie/ Freddie guidelines.

Best of Luck!

For an FHA loan I have Quoted the FHA Guidelines
"A Chapter 13 bankruptcy does not disqualify a Borrower from obtaining an FHA-insured Mortgage, if at the time of case number assignment at least 12 months of the pay-out period under the bankruptcy has elapsed.
The Mortgagee must determine that during this time, the Borrower’s payment performance has been satisfactory and all required payments have been made on time; and the Borrower has received written permission from bankruptcy court to enter into the mortgage transaction."

Best of Luck!

As far my knowledge goes, below 20% will require PMI on most loans. The small amount that won't require PMI would be Non-QM but generally that wont accept less than 20% and then maybe some local credit union has a unique loan option. There are options that will remove PMI once your Loan to Value drops below 80%. There are two great starter loans for owner occupied Freddie Mac Home Possible and FHA.

Freddie Mac Home Possible can have a down payment with as little as 3% for a single family or 5% for a 2-4 unit that can be paid by you, a gift, down payment assistance programs or even sweat equity. If you paid 15% down then your PMI would be extremely low and you could potentially have the loan to value down to 80% in a year to two at which point you could remove the PMI. This loan does have income caps that vary depending on location. 2-4 Unit purchases will require landlord education and if you are a first time home buyer then Homeownership education is also required.

FHA can have a down payment as low as 3.5%. The upfront MIP that is rolled into your loan is 1.75%. The monthly multiplier is .85% of the loan amount divided by 12 months to get you mortgage insurance payment. The mortgage insurance is on the loan for the life of the loan but is a low payment. There is no income cap for FHA. If you are a first time home buyer then Homeownership education isn't required but can be required at the underwriters discretion.

There are many options available to you and with 740+ credit score you will get the best rates available. Speaking with a lender to get preapproved and go over options will be your best bet.

Best of Luck!

I'm going to list out advantages and disadvantages in a bullet format. I am assuming this will be on owner occupied as most people will find it difficult to get a HELOC on rental.

Cash-out Refi
One monthly Payment 
Generally a Higher rate than No cash-out but lower than a HELOC
Lump sum payout
up to 80% Loan to value 

HELOC
Higher variable rate than a Cash-out
Can get a new HELOC once the term expires
two monthly payments one for the first mortgage and one for the HELOC
Line of Credit that can be continuously used during term on HELOC, typically a 10 year draw and then a 20yr repayment period
up to 89.99% to 100% Combined loan to value

Both of these options have their pros and cons and depending on what it is you are wanting to do either could be a good option. Discussing your plans with a lender can help determine which option could be right for you.

Best of luck!

Looking at your post there are three options I see off the start. First is to Purchase with you both on the loan both on Title. The second is to Have you purchase and put her on title. The third is to have you complete the transaction by yourself with only you on the loan and title. All of these options have their own merit and that is for you and your GF to decide which works best.

If you are both on the loan you can count both of your income but it also will stack both of your debts so if one of you doesn't make much and have a lot of debt this could be a poor option. If you are on the loan solo and add her to title then its only your income/debt which depending on your situation could be good or bad. The final is the same as before, the loan the only real benefit I see to this option is if you split up then there is no argument over the unit. 

The best option for a loan I see for you would be an owner occupied FHA loan which would be 3.5% down on a 1-4 unit. You can use this loan with any of the above options and if you are both doing well and secure with each other I would suggest both of you going in on the loan as this will help debt ratio. However, this is a decision the two of you need to make with a lot of discussion.

Best of Luck!

While building your credit try shooting for a 740+ as this will allow you to get the best market rates. You can get the loan with as much as 620 score however the rates will be higher than a 740+. 

As far as length you can go 30yr or 15yr depending on what you are wanting, if you can handle the higher payments of a 15yr it will get the loan paid off in half the time however a 30yr will be smaller payments that could potentially allow you to cash flow easier/quicker.

The best loan choice for a Rental would be a Fannie/Freddie with 15% down on a Single family. If you want 2-4 unit then the Fannie/Freddie would 25%. An alternative option would be to get an owner occupied FHA loan on a 2-4 unit with 3.5% down.

If you are wanting to refinance to get off FHA then need to wait until the equity in your home has built to 25% equity or more to switch from a Primary FHA to a non-owner occupied Conventional. If you're not planning on moving and in need of freeing up the FHA eligibility then there is no real need for the refinance if you are just going to begin collecting boarder income.

Or if you are wanting to get on to the next deal leave the current on FHA and begin searching for a new home to purchase and put 3%-5% down for Conventional as a owner occupied as your FHA 1 year owner occupied requirement has been met by then

Once your current home has 25%-30% equity you can refinance it to conventional thereby freeing up your FHA again. I would toggle back and forth between FHA and Conventional so you don't have to wait for each property to get the equity before getting new deals. However, in all cases if you take out an owner occupied loan you must occupy it for one year.

Best of Luck!