All Forum Posts by: Andrew Postell

@Kris Wong welcome to Bigger Pockets!  Nice to see so many fellow Texans here!

@Account Closed my firm recommendation is to research everything you can. Google it all and be an expert. My second recommendation is to speak with a Loan Officer who you feel comfortable with. There are a lot of us out there and some are better than others so you may have to interview a few. Remember you are about to enter a 30 year relationship with them...that's longer than most marriages. And you are probably making the largest financial decision of your life. Make sure you have a good person in your corner. A helpful loan officer will help you understand how much money you need for a down payment, how much typical closing costs will be, how an FHA is different than other loans, and how they can benefit you. A good loan officer will also answer emails and their phone. Hopefully this helps!

@Matt W. I've been lending for many years and sometimes individuals have different goals and priorities than the rest of us.  I usually present 2 or 3 options so that the customer knows that there are different choices.  We talk it through and and in our conversation there's always a reason for them to take one option over another.  There's always a reason why one loan is better for someone than another loan.  If you present all the information that they need to make a knowledgeable decision then it will be easy to come to a solution. It sounds like you have some good options for people to choose from.  

@Joel Ostein companies look to hire the absolute best individuals and if that's you then I'm interested in hiring you. Other companies will too. You can even have your own branch in some instances. You may still have to be licensed but it would be a lot simpler than starting your own company. E&O Insurance, Start Up costs, Compliance, and bank relationships will be items you will need to research if you want to be your own broker. Having been on the broker side before (just last year) it is extremely rewarding but also has its cons as well. Maybe for this type of a discussion you may want to try the Scottsmans Guide forums (that's the publication for mortgage professionals). Good luck!

@Nick Schulze the VA guidelines specifically state that "gift funds" must originate from a blood relative (father, son, etc) or a spouse. The only other way to to us other funds is for those funds to be in your account for over 2 bank statements. Meaning if I saw the last 2 monthly statements I could not see the deposit. NOT the past 60 days but the actual generated statements - so over 60 days at minimum. However, the bank also has the right to require up to 6 months of statements but this is extremely rare. Hope this helps.

@Richard Anderson it sounds like your HELOC will affect two things: if your preapproval is based on having a down payment, and your down payment is dependent on the HELOC, then you would have to have the HELOC executed to be preapproved anyway. It also plays a part in your DTI. Hope these help.

@Karen Griffith the specific wording of the FHA manual is two fold: 1. A principal residence is a property that will be occupied by the borrower for the majority of the calendar year. 2. FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower's principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year.

Any person individually or jointly owning a home covered by an FHA insured mortgage in which ownership is maintained may not purchase another principal residence with FHA insurance, except in certain situations as in relocation outside the commuting area of the original home, an increase in family size, getting a divorce from the co-borrower on the original FHA property, or was a non-occupying co-borrower on the original property.

Those are excerpts from the actual FHA manual.  If you are moving out to buy another property with another loan type (conventional) for example that is allowed in the same area but some banks might question if you do it too soon after buying the first property.  Hope this helps!

@Jose Alonso I write cash out loans all the time. The actual process is similar to a normal refinance - meaning you will need to be qualified for the loan, then have an appraisal on the home, then close on the loan.  Each bank will be very different in how simple, or complicated, that 3-step process is.  When the time comes to refinance make sure to shop around.  Even a .125% difference can add up to tens of thousands of dollars over time.  Don't just rely on costs though. If I'm cheaper but it takes me 90 days but the other guy who is $100 higher in closing costs can get you closed in 45 days which lender is better?  Interview and trust your instinct!

@Michael Dunn I would also recommend having a conversation with your Loan Officer about the specifics. Yes, the HELOC does have lower closing costs but how long until it is approved? Some banks have a 90 day backlog on their HELOCs right now. If the refinance takes 40 days is it worth the higher costs? Get the full scoop on closing times and numbers and you will see what the right decision is.

@Jay Elvin try possible Personal Guarantee Loans, Home Equity Loans, Cash Out Refinance Loans, Credit Card Loans, Family Member loans, Crowd Sourcing, etc.  Beg and borrow.  If the deal makes sense you should be able to sell the idea of them investing in it with you, right?  I would encourage you to stick with the Purchase Price + Rehab numbers of 70% of the After Repair Value.  Meaning do not buy a home that violates this number.  Why?  Because if you do max out your available cash for a home you will need to get that cash back right away.  Keeping at 70% means you can refinance, flip, or wholesale that deal to someone else.  Then if you do get a short term loan from a family member you can pay it back and keep the proceeds.  Or just refinance the home and get your initial investment back.  If you stick to that formula you won't need to get many "creative" financing solutions for the down payment after a few transactions.  Hope this helps!