All Forum Posts by: Upen Patel

Hey! @Charles Prem. As @Mike Cangi stated, for 1-unit properties, investors can use the Fannie Mae HomeStyle Renovation loan for the purchase + rehab of the property.

From what I can tell, you are actually planning to live in the property. You can use the same loan for that as well, with a lot less down. :-)

If I am readying your original post, then this would be a rate and term refi, since your 1st and HELOC are done at the same time, at the time of purchase.

Hey! @Charles Kac If you are going to be moving within the same area (e.g. Seattle metro) then you are better off going from FHA to Conventional. Keep in mind that you are required to live in a property for at least 12 months. Also, most lenders will not approve you if you are moving between similar properties. The new property has to be a step up (e.g. larger living area, better schools, closer to work, moving from a TH to SFH, etc.).

Good luck.

Hi! @Carl Mccrory. Thank you for your service.

To answer your question, we look at your current and past employment, and future if its known. So in the case of your friend, if he has turned his papers and an official date is set in the system, then the lender will know the future when we request a VOE (verification of employment). In that case the loan is based on the worst case scenario. If on the other hand, he has decided that he is going to be leaving soon, but there is nothing official, then the loan would be based on the current/past employment history.

Hope this helps you and your friend.

@Mark Ruiz Conventional 30 yr fixed mortgage is only for 1-4 unit residential properties. This being a 7 unit property, you only qualify for a commercial loan.

Typically commercial loans will have seasoning from the point that property is stabilized, e.g. 90 day seasoning once 90% occupancy has been achieved.

Your options will depend on the size of the transaction. If it is $1MM+ that you could qualify for a small balance agency loan, which has standard terms. If it is below, $1MM then each bank has its own terms.

Hey! @Linda Weygant I can connect with a reputable law firm in the area that has a dedicated real estate practice. Please reach out to me.

Hey! @Alfred Litton Find a new lender. Seems like your bank has a internal overlay. Fannie/Freddie allow for transfer of title from LLC to personal name as part of the refi process. The title has to be seasoned in the LLC name, an has to be a like for like transfer. i.e. if the LLC is a 2 member LLC, then the title has to be in the name of those two members.

@Jim Morris HELOCs generally have a higher interest rate then a 30 yr fixed, and the rate on a HELOC is not fixed. So to use a HELOC in place of a 30 yr fixed conventional loan doesn't help your long term goal. What you want is a predictable, consistent monthly payment.

You should do a refi of house "A" to pay off the HELOC and move into a 30 yr fixed. For house "B" you can do a cash-out refi to get the funds out, so you can but the next property.

@Jeffrey Trudeau No those properties are on separate parcels of land with their individual tax id. So each property would get its own loan.

Each of you could buy one as owner occupied and live in it.

@Macall Smith The max LTV you will get on a cash-out refi will depend on the type of loan - conventional, non-agency, bundled, etc. and seasoning.

For a conventional 30 yr fixed loan you can get max 75% LTV (1-unit) and 70% LTV (2-4 unit). Those are the agency guidelines. Some lender might choose to be more conservative then what agency will allow.