All Forum Posts by: Upen Patel

@Georges A. If you truly going to live in the new property, then you can:

• FHA: pro - Low down payment (3.5%), con - PMI that is with you for as long as you keep the loan + 1.75% mortgage insurance premium at closing
• Piggy back loan: If you have the credit and income to support it then you can get a 80% primary loan + 10% Home Equity Loan or HELOC (some lenders will do 15%). So, you only need to come up with 10% down. pro - you can save money and pay off the HE/HELOC and you are done with it. con - you have to come up with 10% down.
• Conventional with PMI: Put only 5% or 10% down and get a primary loan with PMI. pro - once you pay down the loan to an LTV of <=80% PMI goes away.

Good luck.

Upen Patel, Mortgage Banker 

@Robert Reardon Has your friend looked into getting a fully approved mortgage loan? In this scenario, he would go through the full underwriting process with the property address as TBD. Once he is approved, the only contingency is that the property appraises at or above the loan LTV requirements. This is as good as cash, because the seller know that he is already approved.

Upen Patel

Originally posted by @Upen Patel:

Did some looking. If property is bought with cash, a creative lender can do a delayed financing within 6 months. That way you get low rates as a purchase loan.

@Sophia McMillion Rates are a reflection of many things combined.

• Your credit
• How much debt do you have outstanding
• Your ability to repay your old and new debt
• How long have you worked
• What is the loan amount - conventional, jumbo, super jumbo
• Is it a fixed rate or ARM - 30 yr fix, 15 yr fix, 10/1 ARM, 5/1 ARM, 1/1 ARM, 1 month ARM
• What is the purpose of the loan - purchase, refi, investment
• What type of a loan are you looking for - conventional, FHA, VA

So can't really tell you if you are getting a good or bad deal without details.

I would be happy to review if for you if you like.

Upen Patel

@Matthew Paul That is a violation of Fair Housing laws and your states landlord/tenant laws. While you can base your decision on their credit report, you can charge different rent based on credit.

Personally, if I see the rental as risky, then I would not rent. Having an additional month or two of rent is going to do you no good, if the tenant is a PITA. I am talking from experience.

Upen Patel

@Gail W. I feel your pain. I custom built my house and even after having an air tight contract, I had to fight with them (and give in a bit) to get a contract release so that I could convert my construction loan to a permanent loan.
Would need to understand your situation and chronology to understand where you stand.

• Did you have a direct contract with each contractor? or Just with the main contractor?
• When you replace the cabinet contractor with this guy, did you give him the insurance paperwork? For insurance work the contractor has to agree to completing the work for the approved amount, or you have to agree to cover the overage. If you did and he went over then you can hold his feet to the fire. If you did not share this then you might have to pay, but not always.
• Did he give you pricing? What type of approval did you give him?
• Did you check his contractor license?

These are a few questions I can think of quickly. I can come up with more if I know more. The point is depending on what was done and when, you could have a strong case or a weak case. If you have a descent case, then you can file a complaint with your counties consumer protection board. If might already know about this guy. If they agree with your case, then they will help mediate the issue. If it does not get resolved then, they will take him to court.

The good thing is that you are in your house.

Feel free to respond here or PM to discuss further.

Good luck,

Upen Patel

@Curtis York Jr Have you looked into a FHA loan? You can do a low down payment (even as low as 3.5%), and there are direct FHA lenders how will go down to 600 credit.

Good luck.
Upen Patel

@Josh S. Without income, you can't get a mortgage. Under new guidelines you have to have income to be able to service your debt.

You can look into getting a hard money loan