All Forum Posts by: Torrell Palmason

Hey Todd,

So the down payment for a Conventional Owner occupied 2 unit is 15% this will still have PMI as that is removed at 80% LTV.

There are 2 options to get a down payment less than the 15%. The first is VA which can get to 0% down and the second is FHA which will get you 3.5%. If you haven't served and don't want to bring 15% down to the table then FHA will be your only option. This is a owner occupied loan meaning you must live at the property for the minimum of 1 year.

Best of Luck!

Hey Gabe,

You wouldn't finance it with an LLC with conventional financing. You could close and then transfer it into an LLC however, you could run into a problem with Due on Sale Clause unless you are in a Fannie Mae Loan.

If you went with an FHA SFH that is 3.5% down or a Fannie Mae SFH requires 5% Down.

If you are wanting this to be long term investment I would recommend going for the Fannie Mae as the PMI requirements will drop off at 80% LTV and will allow you to transfer the loan into an LLC. An FHA loan is more flexible so is great if you are having any struggles getting into a Fannie loan and you can always refinance out of your FHA into a Fannie after you have 20% Equity so you can get rid of your Mortgage Insurance.

Best of Luck!

Hey MJ

There are no national programs for a non-owner occupied Manufactured Home. There are two options the first and less favorable is use Hard Money to get it done. The second option is to make the rounds to local Credit Unions to find the one golden nugget with that program.

Best of Luck!

So what it sounds like you are asking is can you get a HELOC with no current property and the answer is no.

I would like to clarify a couple other points for you. If you are looking to do 1 unit investment property with Conventional/Fannie/Freddie the down payment is 15% and if you want to do a 2-4 unit the down payment is 25%.

Another option for you is to get a 2-4 unit Owner occupied FHA loan for 3.5% down. This will require you to live in one unit for a minimum of 1 year but you can rent out the other units. On this loan type with 3-4 units you will need to pass a self-sufficiency test which is just a test to verify that the rent from the home pays for your PITI (Principal, Interest, Taxes and Insurance).

Another option if you are interested in fixing the home prior to renting it is the BRRRR method. With this method you buy the home at subpar conditions with Hard money at 10%-20% down. The hard money then covers the rehab costs and you are making interest only payments on the loan. After your rehab is complete usually 6-12 months you refinance the home into a conventional loan and if your ARV (After Rehab Value) was high enough you can pull your down payment plus your operating costs out of the built up equity so you essentially purchase the home at no cost.

There are many options to getting started in this field and it is up to you on how you want to get in the game 

Best of Luck!

Well if you have full eligibility then your loan limits for San Diego County 1 unit $753,000, 2 unit 964,300, 3 unit 1,165,600 and 4 unit 1,448,600 and if you go over you will have to pay 25% down on the difference of the limit and purchase price. Seller cannot contribute to your down payment but they can contribute up to 4% of your purchase price towards closing costs.

Best of Luck!

Hey Dan, So every DSCR loan is a bit different but I am going to go off the terms we have. So rents must be 1 to 1.2. Our Down payment requirement is 15% with a 740 Credit Score and 6 months PITI. As far as getting it with your LLC shouldn't be any issue, it will be taken out in the LLC's name with a personal Guarantee from you.

Everyone’s terms will shift place to place so find your lender and work through their terms so you know exactly what you will be looking at.

Best of Luck!

There are different terms on every single loan type. An Issue that might pop up is if you have lived there less than a year following the HELOC at which point they could close the HELOC.

Other than that it is a judgement call on the part of the lender as the loan was made as a Owner occupied and if they want to they can close it. However, I see the more likely being that if you make payments they won’t care.

I will caveat this with the best answer is to call your HELOC Lender and verify their terms so you are not caught unaware by anything.

Best of Luck!

For starters On Traditional Fannie/Freddie for a 1 unit it will be 15% down and 2-4 unit it will be 25% Down. There is also the option of Non-QM every program is different but for example my company will do Bank statement loans up to 90% LTV with a 740 Credit Score and DSCR up to a 85% LTV. The terms will vary program to program for LTV, DTI, Reserves, etc.. Another option if you are comfortable with the BRRRR model is Hard Money which can get to 5-10% Down depending on the circumstance.

There are many options all depending on what you are looking for or comfortable with.

Best of Luck!

So there are three options for you on this loan. Two of the choices will leave the the loan and title in the name of your LLC.

Non-QM loans will allow you to keep the Loan in the name of you LLC with a personal guarantee. However the issue with doing this loan type is if you and your partner went in on all 5 loans together then one of you wanted to branch off on a deal of your own then you will have to count the full amount of 5 mortgages against you and only 50% of the income towards your Debt-to-Income Ratio.

A Commercial/Portfolio loan will allow you to keep the loan in your LLC with no personal guarantee. This means the mortgages won't count against your Debt-to-Income Ratio, only the Profit or Losses from these loans at 50% will count towards your DTI. This will allow you and your partner more flexibility to do deals and loans outside of your partnership.

The third type is the one you mention where you will have to quit claim yourselves to the title to refinance as Conventional specifically Fannie Mae before quit claiming the LLC back onto title. However, with this one like the Non-QM the mortgages will be counted against each of you personally and only 50% of the income received will be counted for you.

This will come down to personal choice between you, your partner and what your future plans are.

Best of Luck!

Hey Blake, A National lender that will do HELOC on a investment is Quorum FCU. That is just one of those weird ones that not many lenders do so it's pretty slim pickings.

Best of Luck!