All Forum Posts by: Zach Wain

Boom! what Colby said  ^^^^^^^^^^^^^^^^^^^^^^^  You can still get a conventional loan

@Angel Alicea - You would need $29k down total and you are good to go regarding loan size. That would be your total downpayment. Base loan size of $621,000. FHA has up front PMI that gets financed on top of the loan size, so your final loan size will be larger.

If you have any questions on how FHA loans work reach out anytime! There are a few important parts, like up front PMI/monthly PMI/underwriting guidelines that are worth reviewing. Sometimes, conventional loans offer better deals if you have excellent credit. You could do as little as 3% down since the conventional loan size is higher, $766,550...

That means you would only need to put down $19,500 for 3% down. That is something to consider as well. Great credit is needed for conventional to beat FHA

@Eric Lowder something to be aware, when you get your next loan, the lender will look at your schedule E to determine rental income from your property.  If there is no schedule, they will look at a lease and use 75% of the lease as rental income.  If you show a loss on your schedule E, the lender may decide to hit you with the full payment as a rental loss.  Maybe you can get an exception, but that can be 50/50

This week mortgage rates have increased slightly, maybe 0.125% to rate.  Today, we are flat vs the 10yr yield has gone up.  There is a larger spread between the 10yr yield and 30yr fixed conv mortgage rates than normal.  1.75% spread between the 10yr T and 30 yr mtg is fairly normal.  We are still playing around 2.75%-3% give or take.

I am not sure how long it will take for that to level out...  

The underwriter will definitely ask why you are making a move.  First, make sure to live in your homes for 12 months and meet the occupy guidelines.  After that, you have every right to buy a new primary home.  As it was said above, justify it somehow.  As long as you are truly moving into the new home for at least 12 months, you are within the guidelines.

Maybe your neighbors are too loud...  It could be any reason.  Stay 12 months and you have met the guidelines!   It is  a great way to build a portfolio, 100% good to go with your plan

I recommend you speak with a real estate attorney. I have heard from multiple attorneys that putting a home in a LLC is a good step, but they are not as iron clad as most people think. Piercing the LLC veil is possible. I like the idea of a large Umbrella policy in addition to a LLC, but dig a little further

Preach!! Do not listen to someone selling you a DSCR loan at a higher rate, lots of fees, with a prepayment penalty, etc - just to title into a LLC name.

What Jay said!

This varies from lender to lender, we have 1 that you can pay back and another lending partner that makes you keep the balance open for 3 months.  From the banks perspective, its a lot of work to complete a loan and some people keep them at $0 and never use them.  So, they are trying to earn some sort of money from the work they do.

@Martin Koch - There are only a few specific scenarios where local lenders matter, or lenders that specialize in certain states.  NY and Co ops is an example of that.  For CA, AZ, anything in that area the lenders location does not matter.

TX and FL have a couple nuances about it, but nothing too complex.  Mostly special cash out rules, higher state fees (FL) and expensive property taxes.

We are licensed in AZ, CA, CO, FLK, and TX.  If you have any questions let me know.