All Forum Posts by: Weng L.

 Hi @Suzette T, I have talked to 6 lenders in past 1 month, 5 of them have dropped all restrictions added after COVID-19. You may want to talk to other lenders if they still have COVID-19 restrictions.

Yes I understand that lender can have overlay policy such as minimum down payment (this likely already exist prior to COVID-19). I am more curious about if interest rates are different if down payment are 25% vs 20% (if the lender allows 20% when borrower owns 5+ financed properties)

For conventional loan, a few years ago the minimum down payment on a 1-unit investment property was 20% (if the borrower owns 1-4 financed properties) or 25% (if the borrower owns 5-10 financed properties). I am not seeing this in fannie mae and freddie mac websites now. Instead, they both allow 85% LTV (i.e. 15% down payment) on purchase of 1-unit investment property:

https://singlefamily.fanniemae...

http://www.freddiemac.com/sing...

Is this true that even owning more than 5 financed properties, you can still use down payment 15% (with PMI) and 20% on 1-unit investment property today?

How much difference in interest rate when down payment is 20% versus 25% on 1-unit investment property?

@Kyle Funnell

Thank you.

I called space coast and they don’t lend to a borrower who has 5+ financed properties

I am approaching 10 financed properties and looking to buy another 8 properties within next 3 months. Fannie mae and freddie mac backed mortgages only allow a borrower to have up to 10 financed properties. Anyone knows any south Florida (Miami, Broward, Palm Beach) local credit union that holds and services mortgage themselves so they don't have the limit of 10 financed properties?

For example, using Fannie mae and freddie mac backed loans, today you can get a mortgage of:

Investment property

purchase price $400,000

25% down payment $100,000

30-year fixed rate

less than 3% interest

Any non-conventional loans that can get to as close to the numbers above as possible? (exclude commercial loans that are typically <= 20 years and >30% down and >4% interest)


 

@Eric Veronica

You misinterpreted my original post. It is one deed. For example:

2 townhouses:
https://www.redfin.com/FL/Fort...

https://bcpa.net/RecInfo.asp?U...

11 townhouses:

https://bcpa.net/RecInfo.asp?U...

These 11 townhouses are in 2 separated buildings.  

I am looking to buy new construction of townhouse and surprised to see that seller passes following fees to buyer in closing costs:

Impact Fee - Water: $1129

Impact Fee - Waste Water: $2554

City Development Review: $8128

Environment Review: $275

Water Connection: $775

Electricity Connection: $1129

50% Credit for City Development Review: ($4064)

Total: $15,426 - $4,064 = $11,362

Plus they already want to charge buyer builder fee that is 1.75% of purchase price.

I know everything is negotiable but I have never seen that buyer paying any of these impact fees, review fees and utility connection fees (If so, why don't sellers charge buyers soil test, elevation survey, architectural drawing, pluming permit etc.? lol)  I am curious how common do you see this?

I am looking to buy new construction townhouses and talking to seller if they can sell whole building (that has four 2-story townhouses) to me as one portfolio (one property) instead 4 separate units. From financial perspective, will conventional mortgage lender's underwriting accept this property (as a 4-unit multi-family)?

Another seller has two 1-story duplexes for sell (total of 4 units), but these two duplexes are not under the same roof. There are brick pavers that connect these 2 duplexes and they share the same brick paver driveway and entrance. In this case, will mortgage lender's underwriting consider these two duplexes as one property even if you can do it with your county record as one unit?  

@Bill Exeter Thank you very much. Your information helps a lot!

BTW, I want to avoid cash purchase on replacement property than cash-out refinance on it because right now it is difficult to get high LTV cash-out refi and interest rate is very high on cash-out refi compared with interest rate of purchase