All Forum Posts by: Account Closed

@Gabriel Abikzer I just DM'ed you. You can go to your inbox.

@Gabriel Abikzer Yes, with higher loan amount for larger and well-performed property, it's easier to get low rate.

@Allen Zhu You can have as many as you want. There is no limit on that.

You can pay down rate by paying points, but 1 point is not equal to 1% lower in interest rate. Different lender has different conversion ratio, it's about 0.4-0.6% lower. If you loan amount is over $2million, there is a chance to get rate around 4.5% without paying extra points.

@Allen Zhu There is a loan program which does not require w2 history. It is based on the cash flow of the property. So if the rent income is enough to cover the tax, insurance, and mortgage payment and you meet the minimum credit score requirement, you qualify for the loan. It is called DSCR loan.

@Haven Ousley There are a lot of lenders that don't look at your income history at all. They look at the cash flow of the property and your credit score (as long as you meet their minimum requirement). For purchase, 20% down is pretty normal. So you can either partner with other people to start investing, or try to save some money up for the down payment would be your next step. While working on that, keep learning and get more knowledge would also vitally important to reduce the risk.

@Yacine Rimmo This is a typical fix and flip loan which includes up to 90% of the purchase price plus up to 100% of the rehab cost, depending on your credit score and past experience. It is a short-term loan with interest-only payment. After you put the tenant for 3 months, you can cash-out refinance to a long-term 30-fixed rate loan to pay off the short-term loan. The rent income should be enough to cover your property expense (tax and insurance) and mortgage payment.

I think you can get a bridge loan to help the acquisition and construction. interest only payment for however long depending on the project needs. After construction and stabilize the property, you can refinance to a long-term loan.

@Robert D Wade III, what is the purchase price and how much renovation is estimated to be? Who is going to do the conversion for you? Do you have such experience before?

I assume you talked about DSCR loan which is highly depending on the rent income. If your rent income is below market rent and the debt service coverage ratio is tight, there is an interest only payment option. Your credit score should qualify for 75% LTV cash-out. If you have a long-term lease, things would become much easier.