All Forum Posts by: Jeff Trevarthen

If you're the Realtor and you're also the buyer, you may need to worry about a non-arms length transaction.  I believe that you need at least a 15% down payment if that is the case.  Don't quote me on that as I haven't looked up the guideline in a long time. :)  Just be aware. 

I think you should both apply for the loan.

You could use a small portion of that money on credit repair and not have to worry about credit issues down the road!

Hey Victor.

A lot of good info. As stated above, rental income is used to offset the mortgage debt so you definitely need to buy right in order for this to not effect your DTI. A rent survey is typically done by the appraiser for the estimated rental income in properties that are not currently rentals. From what I've seen, they are very conservative when coming up with that number.

 It should be noted that as long as the loans are confirming (Fannie or Freddie), these rules apply. Typically when you get into working with jumbo loans, they'll want to see the tax returns with a two year history. I live in San Jose and have financed a couple of these non-owner properties over the last couple months for my clients so feel free to hit me up if want to discuss.

Good luck.

Jeff

40% down?  With Wells?  Must be an investment property.

Typically there is a 6 month seasoning when you use one lender and then go back to the same lender.  Back in the old days they used to have prepayment penalties.  When prepayment penalties went away and before the crash, some lenders would churn loans...meaning they'd finance a property, and then 3 months later, they'd finance the property again with a refinance.  Essentially, they were earning a fee on the same property every 3 months even there was no real benefit to the borrower. 

If you to another lender to get a better deal, then they don't typically care about "seasoning" on the mortgage.  I just completed something similar at the beginning of March.

Once you secure the HELOC on your primary residence, you're are good to go. You can use it for whatever you like after that.

The terms are pretty standard.  Remember, don't trip over pennies to get to dollars.   Mortgage money is the cheapest money you can find.

@Account Closed Get a co-signer.  In other words find someone who can be the primary borrower.  Good luck.

@Thomas Smith Actually you don't need to wait six months.  You can start immediately after purchase.  Here's an article I wrote about a year ago regarding this very strategy.

https://www.biggerpockets.com/renewsblog/2015/01/08/delayed-financing-buy-investment-property/

If your property is in Michigan, there's a group that I used to broker to called United Wholesale Mortgage.  They are really good, and can do delayed financing, but I'm not sure if they do Retail.  I'm sure you could call them.

Hope that helps,

Jeff

Hi @Thomas Smith,

I don't know the area as I'm in California, but I do know that many people are using cash to purchase properties and then immediately taking a percentage of the money back out.  It's called delayed financing.

Good luck.

Jeff

Hi Lamont,

I'm not sure if what  you're asking is very clear.  Can you elaborate?

Jeff