All Forum Posts by: Benjamin Piecenski

@Michael Bacile My apologies, I should have clarified.  You only have to occupy as a primary residence for one year following closing.  Afterwards, you are able to use it as a rental.

For those curious on how Islamic Financing works, here's a great, informative article that I found really interesting.  https://www.investopedia.com/articles/07/islamic_investing.asp

@Chinmay J. Right now, I'm also seeing the 4.25% figure, so around ~4.30% APR like the quote. With your strong credit and above 20% down payment, I would try a few different firms as anyone can do your loan, and some banks will price below the "Prime" rate to stay competitive for you. If you'd like a referral to a lender licensed in VA, let me know!

@John Webber Unfortunately, you cannot use HomeReady to purchase an investment property.  HomeReady you can only acquire a one unit property, while with Home Possible you can acquire a 2-4 unit.  Both HomeReady and Home Possible require you to occupy the property as your primary residence.

Who do you bank with personally? Some larger banks will lend to an LLC for clients who have a decent amount of assets with them

Hi, Yesenia!

What exactly do you mean by an alternative loan source?  Hard money/private lending?

Lawrence,

With your credit score, for a low down payment program you should be looking at a conventional 97% LTV program, preferably either HomeReady or Home Possible as they have better mortgage insurance rates as well as interest rates. Depending on how pricing is during the day, I'm finding around a 680 credit score is where we are seeing the break even point on which is a better deal. Unless pricing is odd, below a 680 score FHA will be the better deal, and above a 680 score Conventional will be better one. I know that it doesn't apply to you because you're purchasing from a family friend, but Conventional financing also gives you an advantage in a multi-offer scenario over anyone with FHA, as many realtors believe that Conventional financing is not as likely to fall through as FHA. Please note that this 97% LTV program could only be used for one of the residences in the portfolio - the one you intend to occupy. Frank is correct, the other three properties you must have 25% down for traditional financing, although you could maybe seek out private financing.

Hi, Tanner!

Yes, you will have a better rate in nearly any mortgage product when you're securing it against your primary residence, instead of an investment property.  You also are able to write off mortgage interest on your primary residence (consult your tax professional), so I'd say that refinancing your primary instead of your investment property is the smartest play.  Let me know if you have any other curiosities!

Home Ready is conventional, and it is for primary occupancy only.  You must occupy the house for one year before you are "allowed" to use it for other than primary occupancy purposes.  Home Ready is a great program with reduced mortgage insurance and lower interest rates, let me know if you have any other curiosities!

Hey, Fred!

Normally, using someone else (and not disclosing upfront) to obtain a mortgage while you are the one that intends to own the property and make payments, is a type of mortgage fraud called using a Strawbuyer.  What current issues are you running into on your credit?  Late payments, high credit utilization, derogatory public records, collections?