All Forum Posts by: Zach Wain

@Philip Furlong keep in mind that FHA requires the home to be owner occupied by the buyer. If your friend had a bunch of rentals already sometimes underwriters will struggle with a 4plex being considered a primary residence.

@Ryan Cooley - Are you looking at a long term conventional financing?  Cash out or rate/term (no cash out)?  I would be happy to send you some rate/pricing info, PM if you are interested.  Post COVID many lenders have backed away from rental mortgage programs, essentially by increasing their rates drastically to avoid that bucket of programs entirely.  Some lenders are still priced aggressively, it varies greatly.  You will find your best deal with a mortgage Broker or a Correspondent Lender (they are similar, both are different from a traditional bank).  A Broker or Correspondent will have access to multiple lender rate sheets and program guidelines and than can find the best priced option for you.

I hope that helps, reach out for any questions.

Best,

Hi Harlan, I am a local lender and have a lot of experience with VA loan programs. Keep in mind that VA will only lend on primary homes, so this can not be a 4 unit rental property. You are allowed to live in 1 unit and rent the other 3 out making the home a primary home.

Regarding income, if you are currently employed (full time) and have been working for 6 months at the same employer than VA will use your W2 pay as income - assuming it is salary or hourly pay. They will have issues if you have commission or other variable pay without a solid 2 yr history, but salary and hourly pay are easy. They will ask for your 2 year work history and to explain any gaps of employment. Depending on how long the gaps are there might be some additional questions from underwriting.

PM me if you have more detailed questions or want to run through your scenario

@Rick Trevizo - mortgage guidelines are changing daily, and a lot of lenders just announced new price hits towards cash out loans this week.  Why?  Because Fannie Mae will not purchase cash out refi loans that go into forbearance.  Forbearance is causing interest rates to be much higher than they would be otherwise.

That being said, a cash out 4plex rental refinance has some of the largest price hits out there.  Rental pricing is not quite as good as it would normally be compared to where primary purchase rates are.  I will PM you.  Feel free to reach out for quotes or pricing info.  I run a mortgage company in AZ, but have been lending in CA for the past 15 years.

Cash out at record low interest rates and either reinvest in RE or partially invest in RE/Equities

Hi Ziv, I will DM a few contractors I know and trust in the area.  I am not sure of their schedules though, that can be tough if you need work ASAP

@Chris Hughes - Yes we do work with out of state investors, I am working with a few right now.  I will DM you some info

@Chris Hughes - welcome to investing in Phx. I run a local mortgage company and have a great network of realtors, investors from small to large project, res-comm. Phx is a growing market and cash flowing on LTR's is a great path here. STR as well. I have a friend and investor on the forum here that has a nice mix of STR and LTR - I can connect you if you would like.

There are a lot of interesting pockets in Phx.  Arcadia is trendy and a great place to live/own, but very pricey.  Suburbs are spread all across the valley.  Downtown phx has been revamped and has a lot of great spots now.  

Let me know if you need any help

@Jeffrey Daniels - "Unless you just started 1099, income is income for getting approved, right?"  Mostly correct.  Sometimes DU (Fannie Mae approval system) will allow for 1 year of tax returns on certain approvals.  Otherwise, a 2 yr avg is required.  If you just started, correct - there is no history or evidence of what write offs the client will have so we can not determine income

Joe - Have you talked to a quality lender and run through pre approvals yet?  Conventional financing is extremely cheap compared to Hard Money.  I would not go down that path unless you exhausted your conventional financing options.  Serious $$$ differential