All Forum Posts by: Trevor Alexander

That seems like a really good rate actually for a 95% LTV on a second home. The bank that quoted you this is positive it's a second home? Didn't even realize there were lenders out there that would do HELOC's past 90% even on a primary.

I'm seeing cash-out rates on second homes with 75% LTV in the 6.5-7.0% range for 2-3 points. 75% LTV and after points and closing costs, you'd be left with closer to $100,000 cash out and only a point better in rate. I'd say the HELOC options looks very favorable if it's a shorter term play. I wouldn't want to keep a variable rate HELOC around forever.

Hi Michael -- yes, Lenders can use the tax returns to offset the mortgage even if the fair rental days were few. If they are on a tax return, they are fair game. The Lender would look at your tax returns to calculate your portion of the net profit from the LLC, and only that would be used to offset the $180K loan - so chances are it would just make a dent in the $180k mortgage and not wipe it off completely rom your DTI unless it's a major cash flow machine.

Since you are currently the only borrower on the loan, I'm not seeing a way to completely eliminate it from your DTI. Options besides selling would be:

1. Refinance into your buddies names

2. Try to show as much net profit as you can for the remainder of the year to offset the $180k mortgage as your Lender suggested. This would of course affect the taxes you owe.

3. Add more income for the new OO purchase by having a co-signer.

4. Shot in the dark without knowing how far off in DTI you are, here are a few options to try and qualify for the new OO purchase as is. Few examples: if you have extra cash, look to buy points and lower the rate or buy out the PMI (if applicable); look into an ARM with lower rates; look at an FHA loan that allows approvals up to 56.9% DTI; offload a car loan if applicable.

Hope this helps.

Has it only been moved from the dealer to the property? What's the age? If it's been moved only once, is tied down to a permanent foundation, and is built after June 16th, 1976, may be able qualify for a conventional or FHA cash-out mortgage.

Sounds like a reverse mortgage would be the best thing to tap into equity here.

Yes, this is correct 

If it’s going to cash flow, and you are using only 10% of capital vs. the industry standard of 25%, that’s a slam dunk. Don’t get fixated on the rate and points if the goal is to cash flow.

Where’s the property if you don’t mind me asking? Those are high rents.

Hi Victor - You can do a one-time full restoration of your VA entitlement when you refinance out of the VA loan to a conventional loan, and then can use your full entitlement for a new VA home loan. However, you can only fully restore your VA entitlement once by doing this. To fully restore entitlement moving forward, you will need to sell the home that is attached to the VA loan.

You can have multiple VA loans at once because it's all dependent on the VA entitlement and guarantee amounts. When you exceed the guarantee, you will need to bring in a down payment. It can get confusing but there's a calculation lenders do to determine how much guarantee is left based off your entitlement amount and the loan amount.\

Hope this helps and let me know if you have any other questions.

Current rate as of today assuming 740 credit is 6.125 for 2.25 points.

Second mortgage guidelines can sometimes be even more strict than 1st mortgages, so chances are no (at least from what I've seen).

Are you self-employed? One option may be to do a 12-month cash-out first mortgage bank statement loan. We'd use the bank statements for qualifying income.