All Forum Posts by: Account Closed

Im under contract to purchase a fourplex with a 16 year old roof. Freddie Mac guidelines say I need replacement cost value RCV on the roof, insurers I have spoken to will only offer actual cost value ACV. How have people been navigating this without replacing the roof?

Yes, I have contacted more brokers 4 of the 5 have zero options for coverage.

0 Votes

Quote from @AJ Exner:

It depends on the lender, so giving them a heads up is good.

Most of the programs that I am aware of will allow you do utilize only 50% of whatever the 'gift' is. So if you provide a good letter of explanation, then you could do more than the 10% as long as it falls within the 50% of the gift funds.

Happy to connect and talk through numbers if that would be helpful.

Good luck!

Could you explain a little better? I am not sure what your statements mean.

0 Votes

I am planning on purchasing a $350k property with DSCR loan. I seen online gift funds can be used with after 10% of my own money. Does being a first time investor change the amount of my required contribution?

I have $35k of my own money to go towards the purchase. My son will be gifting the remainder to me. Can gift funds be used for reserves? Or will i need to have $35k + reserves of my own money to make this happen?

4 Votes

If my homeownere insurance policy covers $1M in liability do you guys still recommend getting more coverage with an umbrella policy?

0 Votes

Apparently I need the business policy plus a rental policy for my unit to coverage my personal property.

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One of the business policies turned out to have the best coveraged for the price. Is there anything I should be concerned about having a business insurance policy on my primary residence?

0 Votes

Thanks John your response was very helpful.

0 Votes

Need insurance on an owner occupied 4 unit property. I am very confused on what coverages I need. I have received quotes with yearly premiums ranging from $1600 - $4500. Each quote that I have received is structured differently with various coverages. What exactly do I need to protect my property and myself?

If you have an owner occupied multifamily what kind of policies and coverages are you carrying?

1 Vote

Working on getting funding for a 4 unit, that I plan to house hack. For those who have closed FHA loans on 4 plexes how many months reserves did your lender require? I thought it would be 3, but I'm getting lenders (banks who service their own loans) telling me 6 months!

0 Votes

Originally posted by @Kevin Romines:

Do it as an FHA loan with 3.5% down, counting the existing rents on the other 3 units. I crunched the numbers and he should end up with a 49% debt ratio. You can go up to 56.9% so he should be okay with that debt ratio. He needs to show enough in rents to cover the whole mortgage payment. Its going to be close on that part?

Negotiate that the seller pays your closing costs. Buy down the rate to lower the payment and make sure the payment is less than the rents. You will be required to have money as reserves. Its a squeaker, but its do-able with the correct adjustments.

I hope this helps?

Yes this helps thanks. Many things I read say just apply and try it. Great to see some reasoning on why this could possibly be a success.

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 7 posts and replied 17 times.

Post: Freddie Mac RCV with Older Roof

Post: DSCR Gift Funds

Post: DSCR Gift Funds

Post: Owner Occupied 4 Unit Plex Insurance

Post: Owner Occupied 4 Unit Plex Insurance

Post: Owner Occupied 4 Unit Plex Insurance

Post: Owner Occupied 4 Unit Plex Insurance

Post: Owner Occupied 4 Unit Plex Insurance

Post: FHA Loan Reserves - 4 Unit Plex

Post: Low Income, High Loan - Will It Work