Single family residence lending needed in San Diego

San Diego, California
Mortgage Brokers & Lenders
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Single family residence lending needed in San Diego

Account Closed
Member since 2022 · 55 posts · 19 votes

Hi there - I'm looking to buy a SFR such as a 3 BR / 2 BA and right after convert it to a smaller SFR and ADU. I would then like to convert the garage into a second ADU and rent out both ADUs. I make $20k gross monthly; have perfect credit; zero debt; $120k+ liquid and yet have only been offered 15% down for up to $1M via bank statement loan because I am self employed and deduct a lot of items for tax reasons. I'd like to only put down 10% though so I can use the funds I have to construct / convert the first ADU to start immediately renting it out and having the renter pay at least $2000 toward the mortgage (realistic estimate based on market rent for the area I'm looking in). Note that I am currently looking at 3 BR / 2 BA places closer to $700k-$900k. I'm considering FHA, conventional, bank statement, really anything as I just want to see what my options are. Thx

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  • Nicholas Coulter
    Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
    4y

    @Account Closed Have you interviewed multiple lenders? This doesnt seem like you have the greatest terms to lend on! If you need suggestions shoot me a DM!

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    4y
    Quote from @Account Closed:

    Hi there - I'm looking to buy a SFR such as a 3 BR / 2 BA and right after convert it to a smaller SFR and ADU. I would then like to convert the garage into a second ADU and rent out both ADUs. I make $20k gross monthly; have perfect credit; zero debt; $120k+ liquid and yet have only been offered 15% down for up to $1M via bank statement loan because I am self employed and deduct a lot of items for tax reasons. I'd like to only put down 10% though so I can use the funds I have to construct / convert the first ADU to start immediately renting it out and having the renter pay at least $2000 toward the mortgage (realistic estimate based on market rent for the area I'm looking in). Note that I am currently looking at 3 BR / 2 BA places closer to $700k-$900k. I'm considering FHA, conventional, bank statement, really anything as I just want to see what my options are. Thx


    FHA and conventional are probably going to be tricky since you are self-employed but the bank statement Non-QM option you mentioned is probably your best bet

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  • Account Closed
    OP
    Member since 2022 · 55 posts · 19 votes
    4y
    Quote from @Nicholas Coulter:

    @Account Closed Have you interviewed multiple lenders? This doesnt seem like you have the greatest terms to lend on! If you need suggestions shoot me a DM!

    I’ve interviewed many. I have found a lot actually that specialize in self employed bank statements loans and they can offer 10% down. You said it doesn’t seem like the best option haha but I’d challenge you to find a better option, given the self employment. I’ve done a lot of research.
    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Account Closed

    So you have found 10% down loans for your situation???  So, what else are you looking for?

    0Reply
  • Nicholas Coulter
    Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
    4y
    Quote from @Account Closed:
    Quote from @Nicholas Coulter:

    @Account Closed Have you interviewed multiple lenders? This doesnt seem like you have the greatest terms to lend on! If you need suggestions shoot me a DM!

    I’ve interviewed many. I have found a lot actually that specialize in self employed bank statements loans and they can offer 10% down. You said it doesn’t seem like the best option haha but I’d challenge you to find a better option, given the self employment. I’ve done a lot of research.

     I missed self employed! Totally my whiff I apologize. With those terms you shouldn’t have an issue finding what you’re looking for down in SD!

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Account Closed:
    Quote from @Nicholas Coulter:

    @Account Closed Have you interviewed multiple lenders? This doesnt seem like you have the greatest terms to lend on! If you need suggestions shoot me a DM!

    I’ve interviewed many. I have found a lot actually that specialize in self employed bank statements loans and they can offer 10% down. You said it doesn’t seem like the best option haha but I’d challenge you to find a better option, given the self employment. I’ve done a lot of research.

     Hey Lisa, 

    Instead of shopping multiple lenders and getting varying terms to earn your business, why not just talk to a mortgage broker licensed in your state that knows which lenders offer the best terms for people that are self-employed. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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  • Mark Frattini
    Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes
    4y

    @Account Closed

    My lender can do 10% down bank statement loans up to $1M. See if you can get a conventional or FHA loan with lower down payment options. If you're looking for something in the $700k-$900k range you should have enough liquid left over to get the ADU going. What are your plans to convert a SFR into a smaller SFR with an ADU? Are you referring to a JADU or are you planning to do a garage conversion?

    If you want to find something that you can rent immediately keep an eye out for listings with "hidden" units. Sometimes the listing agent does not specify that the home has a granny flat, ADU, JADU, casita etc. or its not listed correctly as a multiunit.

    0Reply
  • Jordan Graham
    Real Estate Agent · San Diego, CA · Member since 2019 · 54 posts · 27 votes
    4y

    I love your idea of buying a SFH and adding an ADU or two... that is exactly what I'm doing. There is a new lending policy that if you find a home that already has an ADU built, you can use the future predicted rent to help you qualify for a larger loan (similar to buying a 2-4 unit multi-family).

    There are a lot of cookie cutter lenders out there that want you to have W-2 income and if you don't fit into their little box, it makes it hard to qualify. My dad is buying a home right now and he is self-employed so I put him in touch with one of my favorite lenders, Ed Personius, who lives in so-cal. He works mostly with business owners and bank statement type of loans.

    Shoot me a message if you want me to connect you two.

    0Reply
  • Account Closed
    OP
    Member since 2022 · 55 posts · 19 votes
    4y
    Quick update: I have found an 8.49% fixed 30 year bank statement loan with 10% down for up to $1M. I also now have an even lower initial rate for an ARM as a second option. 

    Quote from @Mark Frattini:

    @Account Closed

    My lender can do 10% down bank statement loans up to $1M. See if you can get a conventional or FHA loan with lower down payment options. If you're looking for something in the $700k-$900k range you should have enough liquid left over to get the ADU going. What are your plans to convert a SFR into a smaller SFR with an ADU? Are you referring to a JADU or are you planning to do a garage conversion?

    If you want to find something that you can rent immediately keep an eye out for listings with "hidden" units. Sometimes the listing agent does not specify that the home has a granny flat, ADU, JADU, casita etc. or its not listed correctly as a multiunit.


    0Reply
  • Account Closed
    OP
    Member since 2022 · 55 posts · 19 votes
    4y
    I don’t mind putting in the effort / doing some research on my own. :-) Quick update: I have found an 8.49% fixed 30 year bank statement loan with 10% down for up to $1M. I also now have an even lower initial rate for an ARM as a second option.

    Quote from @Erik Estrada:
    Quote from @Account Closed:
    Quote from @Nicholas Coulter:

    @Account Closed Have you interviewed multiple lenders? This doesnt seem like you have the greatest terms to lend on! If you need suggestions shoot me a DM!

    I’ve interviewed many. I have found a lot actually that specialize in self employed bank statements loans and they can offer 10% down. You said it doesn’t seem like the best option haha but I’d challenge you to find a better option, given the self employment. I’ve done a lot of research.

     Hey Lisa, 

    Instead of shopping multiple lenders and getting varying terms to earn your business, why not just talk to a mortgage broker licensed in your state that knows which lenders offer the best terms for people that are self-employed. 


    0Reply
  • Account Closed
    OP
    Member since 2022 · 55 posts · 19 votes
    4y

    Quick update: I have found an 8.49% fixed 30 year bank statement loan with 10% down for up to $1M. I also now have an even lower initial rate for an ARM as a second option. A bit bummed that the BP community didn’t help much - I found these options 100% on my own after a lot of research & comms, but maybe they can help more next time. :-)

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @Account Closed:

    Quick update: I have found an 8.49% fixed 30 year bank statement loan with 10% down for up to $1M. I also now have an even lower initial rate for an ARM as a second option. A bit bummed that the BP community didn’t help much - I found these options 100% on my own after a lot of research & comms, but maybe they can help more next time. :-)

    Do you have a property under contract? Is this rate locked? There is a lot of factors that come in to play when getting several quotes from lenders. Additionally, there are ways to strategize to put less down without such a high rate from a bank statement loan. Additionally, if you are getting quoted by a NON QM lender such as a bank statement loan, I am willing to bet you are getting a much higher rate than you would like. Brokers, already have strong lender relationships, that benefit you, the borrower. 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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