All Forum Posts by: Zack Karp

Lenders ask for all your bank accounts on your loan application.  If you don't provide all of them, you may get away with it, but that's on you.  However, if there are transactions/transfers between your accounts on the statements you provide, or large deposits aside from your income, then the underwriter will ask for statements from the other account(s) and/or sources of those deposits.  Another way they can see if you have other accounts is if your paystub has a direct deposit into another account.

Great info @Steven Gesis.  You nailed it, make sure you work with a lender with experience doing these (for example, we have an entire team dedicated to just 203K loans), because an inexperienced lender in 203K's could turn your process into a 90 day mess.

And that 203K contractor database is great, because these contractors have to PAY for this, so you can be confident using someone who is educated and certified.

I can say from first hand experience (as can many people here on BP), don't cut corners for the cheapest contractor!

@Calvin Mclean

Hi Calvin.  Are you looking at 2-4 unit properties?  Because those rates are in the low 4's.  Otherwise, if you are looking at 5+ units, then you are into commercial loans and yes those rates can be a little higher.  You can usually get 25-30 year amortization but the longer the term, the higher the rate usually.

@Jon W.

That's really a loaded question to answer. When you say second property, will it be a primary residence or investment property? Fix and flip, buy and hold, condition of property? Financing van vary widely, from Conventional or FHA to private and hard money. Let me know if you have any specific questions I can help answer.

Welcome to BP neighbor!  Lots of wholesalers around, use the searches in here and you will find lots of people to connect to.

TCF Bank goes up to 90%.  So does First Midwest but I believe only in IL, WI, IN.

@Brandt Tingen

You just need a 620 score for Conventional up to 95% LTV. 620 is pretty much your minimum score for all Conventional programs. FHA is 580.

@Mark F. nailed the other answers.

Keep in mind If you are going to be buying a 2-4 unit FHA as a primary residence, it must make sense to an underwriter that it will be owner occupied. For example if your SFD is 300K and you are buying a 150K 4-unit, that's a hard sell that it's going to be your primary residence. Have a rental agreement in place on the SFD first, and you may need to make a case like you are moving closer to work, etc.

@Tim Kirkland

Welcome to BP!  There is no equity requirement.  If you purchase a SFD as an investment property, which you can do with as little as 15% down, you can rent it right away.  However, when you purchase a property as a primary residence, your Mortgage will include your intention to live in the property for at least one year.  If you convert the property to an investment property within the first year, it could trigger the due on sale clause.  Here is what a typical Mortgage will have included:

Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.

If you breach your Mortgage, the lender can call the Note due.

Hope that helps!

@Christopher Brainard

What @Drew Cameron is referring to is a Money Merge Account.  A MMA uses the daily interest concept to get more money into the principal of the primary mortgage quicker by using every available penny you have available.  This is done by sweeping money back and forth from a heloc and checking account.  If I recall, the MLM company was called UFirst.  Wow that brings back memories.  I assume they went away when everyone's heloc's all got frozen by the banks.

Welcome to BP!  Glad to hear that you stuck with the property over the last decade, even when it went underwater.  Best of luck with your next project!