All Forum Posts by: Alan Lacey

@Cole Britting you can find the second home occupancy much restrictions in the second home rider. It is only applicable for first year of ownership

https://singlefamily.fanniemae.com/media/4051/display

@Jeff Chisum the rates will be right in top of investment for any ltv over 75. Other than going to 90 lc not much difference. I have found many clients were unwittingly committing mortgage fraud with second homes at least in first year of ownership as occupancy rider required that in first year it be used primarily for personal use after 12 month it no longer mattered and could be a full time rental.

@Steven Jones I do t have advice you are looking for, but if you are doing Standard Fannie/Freddie financing another lender can use the appraisals with documentation it was ordered in compliance with AIR (appraisal independence requirements) proof paid for, color copy or appraisal and the Appraisal in a cal format. They can use for 120 days and after 120 days can use with a recert of value. I would check with some other lenders. If not a regular conventional loan then ignore all this.

@John Underwood with option arms and subprime arms. Standard conventional loan arm’s do not have the same issues and we will be seeing more benefit as the yield curve steepens and actually provides a benefit for Arm vs fixed for first time in years.

@Jesse Stein very few servicers have good reviews. All you ever have to worry about is them paying taxes and insurance. Even if they mess up they will pay a penalties, but I would just keep a eye on them disbursing property tax and insurance if you are concerned.

@Alicia Marks most appraisers

Are going to stick to mls to have third party data that supports report and allows them accurately o rain information about thing such as seller concessions etc. the best and typically only way to dispute a value is provide superior mls comps and/or document issues with comps. As for documentation not not items that are matter of judgement. Common examples of things that work would be documenting a error in report( room count square footage etc) Challenging condition adjustments typically a losing bet, but if for example a comp used was in significantly worse condition see if your favorite Realtor can confirm any issues with listing agent that didn’t make it into mls.

@Champ Leong. They do not remove them from your credit history. They update them to reflect 0 balance and paid. Anything other than that would not be standard practice. Maybe it could be negotiated, but again not the norm.

The issue is that most loan products offered on residential homes don't care about cash flow. Or are they allowed to heloc guides mimic Fannie.Freddie which are by design residential in nature. There are lenders that offer debt service coverage ratio loans loans on senile family rental which is based on the home. LTV's not as high and rates not as good, but not bad. Typically need to own 12 months for cash out.

Just shop around probably small local bank credit union as many may not have loan size adjusters. I would also check for a higher rate with lower costs.Apr certainly impacts value of loan, but not the cash flow as payment is based off the note rate.

A fha loan requires a fha/va loan addendum to purchase contract. https://www.americansecure.com... It must be executed to be able to obtain FHA financing and if fha financing accepted it just comes with territory. Every agent should be familiar with form and now that there is no way to waive appraisal contingency on a fha deal. However if home appraises despite issues found in inspection this would not be of help.