All Forum Posts by: Zach Wain

@Tyler Gautier - Most construction financing is when you own the land and want to build a new home from the ground up. For an addition, that is likely a cash out refinance or a HELOC. Maybe there is a niche product that someone can offer, but I have not heard of it before. HELOC rates are high, so it depends on how much cash you need to weigh the pro's/con's of a full cash out refi

@Anthony Owens - I know a colleague that runs a Mortgage Broker shop in Virginia, he will be a great resource for you to gameplan and strategize with.  Drop me a line if you need a referral

@Rahnesha White - I am sorry they pushed a rate lock up front fee on you.  There are hundreds of great lenders that do not charge anything up front.  In the future, I would strongly consider using a different lender that does not charge you up front.

You can use a new lender and lose your EMD, but you might lose the $500 in lock fees...

Now that I see this was 14 days ago, I hope everything worked out for you

Yes it is possible.  But, Cash out rates are going up very soon due to some new rules that the Federal Housing Finance Agency put in place.  Even if rates drop, cash out price hits are going up so I would recommend moving on it sooner rather than later

Reserves! Go with less down, maybe a conv 3% down purchase if its a SFR.

 By August 2023, CPI will be at 2%!  Mark it down, I can explain in more detail.  Look into the future, when the last 6 months of crazy high CPI months fall off, we will look great.  And, "shelter" costs are the highest they have been in all of 2022 on the last CPI report!! WHY?  Because the way the US Bureau of labor statistic calculates shelter costs is a 9-15 month lagging indicator.  PCE, is a little tougher to predict

A cash out conventional loan will likely be your overall best deal. Depending on your income level, you should likely buy with a conventional loan on the other properties as well. DSCR is only there if you can not get a conventional loan. Good luck!

I agree rates keep slipping, but those new LLPA's are not going to help the majority of borrowers.  FHFA keeps changing the rules to the game...

@Keaton Bramlett - The devil is in the details when it comes to DSCR loans. There are multiple loan products with different ratio requirements, different downpayment requirements, high fees and long pre payment penalties are something to go over in detail as well!

We have a massive bucket of DSCR loan programs and options, feel free to reach out if you have any questions.

99.99% chance no, you can not.  They approved the loan with 2 people, so why would the lender remove one of the people that was most likely required to get approved for that loan?