All Forum Posts by: Ashley Cross

You can definitely be the originator of your own loans but you will have to work with the underwriters so you should make sure your company is down for the challenge. If you show losses for your business every year it's going to be very tough to get conventional financing if you are a fully commissioned MLO that's just starting in the business. 

I haven't had any luck with finding a lender that offers HELOCs on investment properties but I was told by another investor that credit unions are offering it. Check out Pen Fed.

With a cash-out refi the max LTV for a single family is 75% and 70% for a multi-unit. Conventional guidelines require 6 months seasoning to pull equity and before the 6 month you are limited to pulling the acquisition costs.

I can only speak to the state that I lend in which is Ohio. We work with state agencies that provide grants and down payment assistance for first time homebuyers, recent graduates, nurses, firefighters, and police officers.

Hi Johnson! I did a BRRR in Columbus with conventional financing. I don't think the financing part was the tough part. The issue was with the managing the renovation cost during the pandemic. We ended up going wayyyy over budget but we ended up breaking even. Watch the comps!

Absolutely. Especially during this economic climate. When the lender gets burned for something they become super timid about going into a deal that isn't a slam dunk.

Hi Tyler! Freddie/Fannie guidelines provide the max LTV of 75% for single family investment properties. If the property appraises for $100k, you'd be a bit short. The best way to get the property to appraise at a specific value is to watch the comps. Make sure the property has sold in less than 6 months from your refinance and it is less than a mile away from your property. It is also important to pay attention to neighborhoods.

Have you considered house hacking? With little capital and a less favorable credit score, it is much easier to get into a property being owner occupied. There are also grants and down payment assistance for primary residences. 

I had a private lender (colleague) do the same thing. I'd assume that's how most private lenders go about it. 

Don't wait to buy real estate....buy real estate and wait. Use the FHA loan to house hack now and wait until it appreciates to refi into a conventional loan then move on to your next house hack. As you are able to save more and get more experience with creative ways to finance a deal you'll be able to accumulate properties quicker and quicker.