All Forum Posts by: Brendon Foster

Hey Kyle, 

So in my experience having been faced with your situation from clients many times, the seller should keep all the money you pay him in an escrow account ( just a separate savings from his regular accounts). Once he has stock piled enough of your payments to equal a down payment ( lets say 10% as we can do that at my lender) then you can use that as your down payment to the lender. now when it comes to closing cost that's another story, either he can give you seller concessions or save up more in the escrow, or on your end to cover those. 

the key thing is he has to keep your payments in an escrow . another option is he lowers the price per payment he receives but that means you still have to come up with a down payment on your end to the new lowered price. 

hope this helps.

Hi Emmanuel, 

Without knowing the specifics of your situation ( income and debts) the answer is it could and it couldn't. when buying a multi family home the down payment is 25% for a duplex 30% for 3-4 units. obviously if are buying a rental property, potential rental income will be factored in.  At the end of the day it will be what you can qualify for and what would you rather have, a home for yourself first, or rent and buy an investment property. 

HI Michael, 

So that 2 yr property management holds true for some lenders like wells fargo ( I just left there) but where I'm at now no you dont need it. what we would do if you dont have a lease agreement already lined up is order a investment property appraisal and the appraiser would determine what the rental market is there. if that doesn't work we have a portfolio lender as a plan B that will most likely do it as they don't play by fannie and freddies rules. 

Message me privately if you like, but from your situation we would most likely be able to get it done for you. 

I Kenza,

Though I'm not directly in PA my  office and I  are licensed in PA. I work with a lot of first timers and millennials as I am one myself.  there is a lot of advice I could give but way to much to type lol. want to chat on the phone today that way I can thoroughly answer your questions?

Let me know :)

Hi Michael,

They are correct in stating that it will improve your rate and pricing. google loan level pricing adjustments. It's fannie mae's chart on the discounts given on a rate determined by credit, property type, occupation type, loan amount, and down payment.

key word in your situation is " if you can." if you are getting seller concessions or can afford to put 25% and you wont be left bone dry in the bank at the end of the day, then why not.  But that is not every ones situation so go with what is comfortable for you and what you can live with at the end of the day. 

Let me know if you have any more questions or concerns.

HI Mike,

So I lived In downtown Detroit for the past 3 years prior to moving to NJ. I have friends that flip homes their and a buddy of mine here in NJ owns 40 properties along with his father in Detroit as well.  I can honestly say that I've first hand seen the growth and return in the real estate in Detroit and it's surrounding suburbs.  Your friends analysis is probably a safe bet if he has done his research. If you read into what is going on in Detroit's economy and what Dan Gilbert ( Chairman of Quicken loans) is doing, people want to be in Detroit right now, especially investors. Foreign investors have also flocked to Detroit. 

I don' know what down side you may run into house hacking to be honest. It's a domino affect to use the profits from one property to the next right? I have not done the research myself on house hacking as you have, so if you want please reply back with what you have learned and maybe I can find the common ground with you on that, I can further discuss your concerns 

@Anastasia Frank-Bruggemann that works! 

I'm In, Probably come with a couple realtors as well! 

HI Michael,

the answer to all 3 is yes. since the properties are so close, one or the other would have to be a an Investment property. since this is your plan of action underwriting should have no issues as there is no means of mortgage fraud with what you plan to do. one thing you will want to keep in mind when qualifying for the new home is debt to income ratios, and having a renter with a signed lease agreement for your current primary lined up will off set the debt ratio helping you qualify with no troubles.

let me know if you have anymore questions or want to speak privately! 

Hi Andrew, though I live in NJ now I'm from Kzoo and worked for Quicken in Detroit for 3 years. let me know if you ever need any contacts in Detroit.