All Forum Posts by: Zach Wain

I agree, find a new lender. HELOC's are a little weird, in that each lender can make up their own guidelines. Nothing is standarized. Usually, if you have new rental properties that are not on tax returns you can show a copy of your lease and we can use 75% of gross rents. Find someone new!

For that size, I agree 0.5%-1%.  I would charge 0.5% in yield spread and keep the up front costs to nothing.  Nice and easy.

Lenders are slowing figuring out how to count STR rents on DSCR loans. Many lenders will require 25% down and since Non QM loans guidelines vary from lender to lender expect from variance in lender guidelines, but we have a DSCR option that counts 80% of expected STR rents.

What has really become popular pricing wise the past few months is Bank Statement loans. If you own a business and you have large monthly business deposits, the rates/pricing on bank statement loans is WAY BETTER than DSCR and its an easy loan process.

Yes Sir.  Duplexes are a piece of cake.  3-4 units are tough sledding right now

I will join the others, if possible I would avoid this scenario.  Too many things can go wrong down the road.  Selling, rehabing, basic maintenance, bills.  What if a divorce happens.  So many things can happen.

But, if you decide this is perfect for you all parties, all 4 of you can be on 1 loan together.  It is actually pretty easy.  All of your income, debts, and credit scores are factored into 1 file.  The loan process is not all that different.  

But ownership is very different!

@Armando Carrera - I think shopping lenders is important, but its tough for a consumer to shop rates.  Most lenders do not mention the amount of discount points/lender fees they are charging for the rates they quote.  Basically, a lot of lenders quote low rates with really high closing costs to lure in buyers.

What I think is best, get a referral or two and speak to the loan officer.  Get a feel for who you like and who will treat you the best.  Rate/fees are important.  Also a lender that cares about your goals and suggests new products and ideas so that you meet your goals.  20% is not always needed.  Maybe that is perfect for your scenario, or maybe its better to only put down 10% so you can do a home renovation.

Everyone's scenario is different, find a loan officer that meets all of your needs

If you are on title together, then you are both equal owners of the home.  When one of you wants to sell or even refinance, the other must sign off.  I did the same thing before I got married, but it worked out  :)  

If you think its not going to work out, I would recommend selling together and moving on.

From the mortgage perspective, I love this strategy!  Best rates and lowest downpayment options are for primary homes, then after 1 year you have met your occupancy requirements.  

If you own your primary home, have you considered converting your primary home into a rental and buying a new primary? Depending on your sales price and County, FHA loans only require 3.5% downpayment and conventional loans 5% down... Converting your primary home is the cheapest way to add real estate as primary purchases require much less downpayment