All Forum Posts by: Upen Patel

If it appraises at $500K, @ 80% LTV you can get a loan for $400K. After paying of the currently owe $310K, you will be left with $90K to buy a condo. This is clearly not enough cash to buy a condo outright here in NoVA. Also, you have a good rate on your primary home. If you can qualify, I would recommend that you get a loan to purchase your investment condo. You will have to put 20% down to do the purchase and get a investment loan. Also, since the loan will be against the condo, you will have a tax advantage which you will not if you take cash out of your primary home to do the purchase.

Hope this helps. Good luck.

Upen Patel

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Buying & Selling Real Estate

Post: Can I refinance conventional if I pay cash for a rental property?

Upen Patel

Posted August 29, 2015 11:49

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@Wayne Solum When you do a cash purchase, you have the option to do a Delayed Financing within 60 days. This would a purchase loan on the purchase price/appraisal. If you want to get the loan on a new appraised value, then you will have to wait for 6 months (not 1 yr), to be able to do a refi with a new appraisal.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

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Buying & Selling Real Estate

Post: Conventional Mortgage and Investment Property Mortgage

Upen Patel

Posted August 28, 2015 12:46

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@Account Closed Since you don't have a primary home of your own, and you are not on your girlfriends loan, you would qualify to get a conventional or FHA mortgage to purchase a primary home (1-4 unit). For conventional or FHA loans you have to occupy the property for a min of 12 months before you can move out.

Work with a mortgage banker who will understand your needs and finances to help you setup a good plan.

Good luck.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

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Mortgage Brokers & Lenders

Post: Loan falling through due to Owner Occupancy Percentage

Upen Patel

Posted August 28, 2015 08:22

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@Jarame Beaupre A high investor ratio makes a condo complex non-warrantable. That's causing your issue. Non to many lenders will do non-warrantable loans. That does not mean that you have to go the portfolio route. There are specialty lenders who will do a thorough review and warranty the condo complex, and then issue you a conventional loan.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

0 Votes

@Chris DeChiara The decision depends on:

What is the interest rate on your current loan?
What is the outstanding loan balance?
What do you expect the house to appraise for?
You can go up to 80% LTV on a cashout for your primary residence. Will this give you enough cash to buy the condo outright?
What would be the loan terms if you got a loan on the condo?

There are many other questions. A good mortgage banker should work with you to analyse your options and make recommendations, so you can make an educated decision.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

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General Real Estate Investing

Post: Buy 2nd home as primary residence while renting out current home

Upen Patel

Posted August 28, 2015 07:12

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@Troy Kerr good post and summary. You trying to take my job away. :-)

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

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General Real Estate Investing

Post: Buy 2nd home as primary residence while renting out current home

Upen Patel

Posted August 28, 2015 07:10

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@Mike Sanz

@Troy Kerr is spot on. VA will allow you to offset the PITI for the current house (VA loan), as long as you are getting another VA loan. If you have a mix of VA and Conventional then its get a bit complicated.

Before you do the IRRRL I would recommend that you work with a knowledgeable mortgage banker to understand the different scenarios. It will come down to the amount of entitlement you have left over, your funding fee, how much of a house you want in NJ and how much you can afford to put down. A good banker should work with you to analyze and review the different options so you can make an educated decision.

Upen Patel

Mortgage Banker, VA Loan Specialist

National Lender, Federal NMLS# 1374243

0 Votes

Private Lending & Conventional Mortgage Advice

Post: FHA MIP Never goes away?

Upen Patel

Posted August 27, 2015 15:06

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@Zach Adams Yes, the FHA MIP is for life of loan if you put the min 3.5% down. There are a few scenarios where it would go away in 11 yrs, but they are too many to list.

Have you looked into a conventional loan with just 3% for 1st time home owners? Yes, it will carry a MIP also, but the MIP is lower. And there is no 1.75% FHA funding fee.

FHA is sometimes good, sometimes bad. Your mortgage bankers should have looked at all options for you. If he/she did not then they failed at their job.

Upen Patel

Mortgage Banker

Federal NMLS# 1374243

0 Votes

@Brandon Barnic Compare the origination fees/points, Title fees & interest rate/point. All the rest is escrow and taxes which are the same anywhere you go.

Always ask for a 0% origination point and 0 points rate. That way you can compare apples to apples. You can always decide to pay point so bring down the rate or take a higher rate to get closing credit.

Upen Patel

Mortgage Banker

Federal NMLS# 1374243

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All Forum Posts by: Upen Patel

Upen Patel has started 49 posts and replied 1720 times.

Post: How much equity?

Post: Can I refinance conventional if I pay cash for a rental property?

Post: Conventional Mortgage and Investment Property Mortgage

Post: FHA loans and FHA 203k loans

Post: Loan falling through due to Owner Occupancy Percentage

Post: How much equity?

Post: Buy 2nd home as primary residence while renting out current home

Post: Buy 2nd home as primary residence while renting out current home

Post: FHA MIP Never goes away?

Post: FHA cost the same everywhere?

Upen Patel has started 49 posts and replied 1720 times.

Biggerpockets Logo Post: How much equity?

Biggerpockets Logo Post: Can I refinance conventional if I pay cash for a rental property?

Biggerpockets Logo Post: Conventional Mortgage and Investment Property Mortgage

Biggerpockets Logo Post: FHA loans and FHA 203k loans

Biggerpockets Logo Post: Loan falling through due to Owner Occupancy Percentage

Biggerpockets Logo Post: How much equity?

Biggerpockets Logo Post: Buy 2nd home as primary residence while renting out current home

Biggerpockets Logo Post: Buy 2nd home as primary residence while renting out current home

Biggerpockets Logo Post: FHA MIP Never goes away?

Biggerpockets Logo Post: FHA cost the same everywhere?

Post: How much equity?

Post: Can I refinance conventional if I pay cash for a rental property?

Post: Conventional Mortgage and Investment Property Mortgage

Post: FHA loans and FHA 203k loans

Post: Loan falling through due to Owner Occupancy Percentage

Post: How much equity?

Post: Buy 2nd home as primary residence while renting out current home

Post: Buy 2nd home as primary residence while renting out current home

Post: FHA MIP Never goes away?

Post: FHA cost the same everywhere?