All Forum Posts by: Zach Wain
Zach Wain has started 12 posts and replied 409 times.
Post: Interest rates soaring down!
- Scottsdale, AZ
- Posts 428
- Votes 246
Quote from @Robin Simon:
Very interesting that rates have been very stable (or even a bit better) this week despite the onslought of treasury yields
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...
Post: Lending Question for Consecutive House Hacking
- Scottsdale, AZ
- Posts 428
- Votes 246
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
Post: LLC or Trust
- Scottsdale, AZ
- Posts 428
- Votes 246
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
Post: Lender won't let me move the property to my LLC
- Scottsdale, AZ
- Posts 428
- Votes 246
Quote from @John Morelli:
Don't listen to these hacks, just cooperate with your original lender, by allowing them to get loan sold and securitized (90 days or less), and do yourself a favor by letting your new lender or servicer get the loan boarded onto their systems.
Once the above takes place (or you've given them their reasonable allowance of time requested), just transfer title to your LLC. Both FNMA and FHLMC permit this, under the following circumstances:
- Notes: For all such transfers affecting mortgage loans purchased or securitized by Fannie Mae on or after June 1, 2016, the transferee is not required to occupy the property
- a limited liability company (LLC), provided that
- the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and
- the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).
- The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae's Selling Guide underwriting requirements.
Citation: D1-4.1-02: Allowable Exemptions Due to the Type of Transfer (04/13/2022)
Now, you will still have the Note and reporting in your name individually and will still be personally responsible for the mortgage and most likely, the manner of transfer will enable any litigant to pierce the veil of your LLC, but you'll have what you wanted, for whatever reason.
The technical permissibility of the transfer aside, as others have stated, it pretty worthless to you in the context you described.
Also, if the subject property is in California, or any other DOT state, you have some additional considerations with the conveyance.
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.
Post: Another DSCR Question - Better with LLC or in Personal Name
- Scottsdale, AZ
- Posts 428
- Votes 246
What Jay said!
Post: Has anyone heard of a HELOC product that needs a full withdrawal
- Scottsdale, AZ
- Posts 428
- Votes 246
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.
Post: Advantages of working with a local lender?
- Scottsdale, AZ
- Posts 428
- Votes 246
@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.
Post: Bigger Pockets Featured Lender
- Scottsdale, AZ
- Posts 428
- Votes 246
I started out with a high contact rate and a couple of apps, but since then the lead quality dropped off. Whether that is bad luck, or rates rising, or some other factors. Mixed reviews sound fair.
Post: Cash out Refinance of Rental Property to give to Son
- Scottsdale, AZ
- Posts 428
- Votes 246
As long as you like the home and the area, I think keeping the home is the better option. Avoiding realty fees and capital gains would be a win. I can not comment on the estate planning aspect of it. Will vs Trust vs transfer on death...
If was giving a property by my parents with 20% equity I would be pretty dang happy about it!
Post: Cash out for a manufactured home
- Scottsdale, AZ
- Posts 428
- Votes 246
@Jae Ha Jung - there are some tricks with cash out on Manufactured homes...
1) We can do a conventional loan cash out double wide, but you are capped at 65% loan to value and a 20 yr fixed is required.
2) We can do a FHA cash out refinance, but not in TX for this scenario. TX has a lot of extra cash out rules that are prohibitive.
3) There are "Non QM" options available, but those loans will have higher interest rates and fees than conventional
I would recommend a conventional loan, it will be the best interest rate and fee structure out there!