All Forum Posts by: Adoney Reid

Hi All,

We have recently moved to the Springfield/Branson area and are just under contract on a home with an FHA assumable mortgage. It is 2.875% and so very attractive. That loan is for $309,000 and the house is under contract for $490000. I need a second mortgage to cover most or all of the rest.

  Being new, we do not know any mortgage agents and need one who can navigate this for us.  Does anyone know any local banks who would do this?  Or a loan officer who can help get this done?

I'm hoping there is someone here in the Bigger Pockets family who can help us out.

Kyle

Rates were low because of 2008 crash and the pandemic, two once a century shocks. Don’t bank on them getting lower. Aim for some cash flow, or a market where appreciation is likely (pop & job growth, etc.). But do you own underwriting assuming they won’t change - and be happy when they do!!!

1. As long as you can get positive cash flow at today's rate purchase now. 

2.  There's no guarantee that rates will ever return to 3-5%. It could take many years, don't be like the "investors" I know who have been sitting on the sidelines since 2016 waiting for a market crash that never came. 

 This would depend on if the business card reports on your personal credit. Lenders will factor in your minimum monthly payment on the balance of the card. 

Are you making any monthly payments on the auto loan? If not, then providing proof that the payments are being made by someone else, will certainly help your DTI ratio

@Adoney Reid are you planning to buy this as a primary residence and house hack or buy as an investment property? 2 different things.  If buying as a primary then the lender will be looking at your personal credit.  If buying as an investment and not planning to live there, different story.

As far as taking out a LOC I would make sure you take it out in the LLC or entity you plan to use to purchase the property with so you have some business credit seasoning under your belt. Although business cc don't report against your personal credit you still want to make sure your personal DTI is good, they're going to look at that too unless you're planning to do like a DSCR loan in which case they usually won't. You'll have to put down 20-25%

Getting the vehicle off your DTI will definitely help, see if your family member's credit is good enough for them to refi you off the loan.

Yes that is probably a smart move.  Most business credit cards do not report on your personal credit report so often times any debt associated with the business credit card will not impact your debt to income ratio. 

Make sure to ask the bank if they will report the business card to your personal credit report.  Some banks  o and some banks dont.