All Forum Posts by: Jeff Trevarthen

@Jay Y. Check out this post I did on the BP blog.  This sounds like a perfect scenario. 

http://www.biggerpockets.com/renewsblog/2015/01/01...

Hope that helps.

Jeff

The best cash flow is going to be with the 30 year loan when comparing the 30 year vs. the 20 year.  As @Sam Elder stated, you're not going to find many loans that go over a 75% loan to value (LTV).

What's the purpose for the portfolio lender?  Do you have some circumstances that prevent financing from a traditional lender?

Definitely a sweet deal.  This should get more buyers back into the game...at least that's what I hope it does.

Get a new HELOC or do a cash-out refinance...

Are you going to have cash flow problems because of the 15 year fixed if you decide to rent it out?  If you decide to go that path, I'd go back to a 30 year fixed with the lowest payment possible to obtain maximum cash flow. 

You'll most likely not be able to use the FHA but you may be able to use the new Fannie product. Either way, you're going to have to pay MI. The FHA is more expensive though.

Hope that helps,

Jeff

You'll need hard money or private money.  Banks will use the lower of the appraisal or the purchase price as the value and you'll have to bring in money from there if you want a traditional loan. 

Check out this blog post I wrote a couple of weeks back: http://www.biggerpockets.com/renewsblog/2014/12/09...

You can also figure out what documentation you'll need here: http://www.biggerpockets.com/renewsblog/2014/12/18...

Hope that helps.

Jeff

@Alan A. You'll want to show the highest income possible. So minimize write-offs if you can.  The cash flow (a portion of it at least) on your current rental can also be counted as income.  

@Stephen Dee I'm not sure it's like this in most places, but in California, once a bank hires an appraisal and he/she completes the job, you're stuck with that appraisal for 90 days.  A rural area is tough especially with no comps.

With a non owner occupied two unit property, you're looking at a maximum loan to value ratio of 85%. That means you're house would have to be worth almost $230,000 (assuming you put down 3% to begin with) in order to get rid of the FHA mortgage insurance. You'll still have to pay mortgage insurance because the loan is over 85% LTV, but its way cheaper than FHA MI.

Hope that helps.

Jeff