@Mary Jay I actually don't like prepaid rent and funny thing is that what's the probability of the business crumbling?

Prepaid rent with a deposit seems like a no brainer while you're on vacation.

https://www.fanniemae.com/content/guide/selling/b2...But this line is the same: "The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan"...Anyone else aware of a definitive change to their Delayed Financing Exception rules?

For comparison purposes, do not pay too close attention to the pre-paid items or the escrow portion of the fees as in the end they will all be the same, just figure out who has the lowest Lender/Title fees and then once you narrow it down, have the LO's explain the escrow portion, I say this, because a newer less experienced LO will "just let the computer figure it all out and a lot of times on the estimate they will just use generic figures like 6 month taxes and 6 months insurance, however, this is not going to be accurate, these should be based on when the next due date is and a reasonable pad (2-3 months is standard for this pad).

By the time you have to pay pre-paids like interest, 14 months insurance, 12 months property taxes, lenders insurance, appraisal, etc it will easily add up to $5000 for a $100k property in most cases.

The two things you will definitely need are decent credit scores (ideally 700 or above though you can get away with a bit lower), and cash for down payment (at least 15% plus closing costs and prepaids).

Closing costs - you'll pay appraisal (optional for cash), inspection ($300-400), title insurance ($1000+), wiring/escrow/settlement fees (<500) and your share of prepaid prorated property taxes sent to the govt.

In the podcast he mentioned writing the rehab costs into the settlement statement, which required an escrow account to hold the funds at closing, if I recall correctly. https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

For emergency savings, consider pre-paid cards.

Prepaids  01 Homeowner’s Insurance Premium (12 months) $240.0002 Mortgage Insurance Premium ( months)03 Prepaid Interest ($33.74 per day for 23 days @ 4.125%) $776.02