All Forum Posts by: Brittany Minocchi
Brittany Minocchi has started 9 posts and replied 960 times.
Post: What financing options do I have???
- Lender
- Massillon, OH
- Posts 996
- Votes 479
You could possibly do a bridge loan, maybe a 6-12 month term to pull some of the equity and rehab, then sell or refi if you plan to hold. Bridge should be doable as long as you have at least a 600 FICO. That will limit your LTV, but doesn't sound like that will be an issue if you're only looking for $100k.
Post: Cash out rate predictions?
- Lender
- Massillon, OH
- Posts 996
- Votes 479
They're no longer projecting cuts for at least the remainder of the year. Not sure what you consider a crazy rate, but cash outs right now for conventional can be low 7s depending on the scenario.
Post: Financing options for a BRRRR + STR?
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Quote from @Sebastian Bennett:
@Brittany Minocchi Just to be clear the 12 month seasoning you mention is a Barrett Financial underwriting requirement, correct?
@Yvonne Wang Use this website to cross check for zoning and whether the permitting is in place.
http://atlas.phila.gov It's a good website with accurate reporting. I recently learned even the MLS can be slow to update and doesn't necessarily reflect the most up to date zoning.
No - it is a requirement for ALL conventional loans backed by Freddie/Fannie regardless of which lender you obtain the loan through.
Post: Financing options for a BRRRR + STR?
- Lender
- Massillon, OH
- Posts 996
- Votes 479
1. If you want to use conventional financing for the refinance, there is no way around the 12 month rule assuming you want to use the appraised value to determine LTV. Anything sooner than that would be based on purchase price.
2. The new loan amount would be based on the purchase price + closing costs, not rehab costs.
3. It all depends on whether or not the numbers work out. Much more to a conventional loan than a DSCR lon as far as qualification goes.
To address your other concerns - rates for DSCR loans aren't always that much higher than conventional, and prepayment penalities can be bought down. If you don't want to have to wait a year to pull your cash out of the property and base the new loan on the after rehab value, DSCR is your best option. Feel free to reach out if you have any other questions!
Post: Bank Statement HELOC for non U.S. citizen
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Quote from @Kevin Mazzola:
What lender does 75% LTV for foreign national DSCR? I have been searching and the most I have seen is 65%.
Whether or not the borrower has an ITIN may also be a factor, but there are options for 75% if the qualifications are met.
Post: DSCR loan rate is high
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Hey Nelish -
Not enough info to say for sure whether that's a competitive offer. It will depend on your FICO, loan amount, property type, number of units, level of experience, etc. Is that two points origination or discount points? Happy to chat further if you'd like to connect.
Post: Cash Out Refi in Under 1 Year?
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Hey Leanna!
Conventional financing requires a minimum of 12 months seasoning, but you do have other options. With completed rehab, there are lenders that require NO seasoning, although many are at the 3-6 month mark. One thing to be aware of, especially in Ohio, is the prepayment penalty typically associated with these types of loans. Ohio is goofy and some (not all) lenders require you to buy out the penalty, which means your rate will be higher. Other lenders will allow you to have a penalty up to 5 years which should have a lower rate compared to no penalty. It will be triggered upon sale OR refinance, so if you think you might want to refinance in the next couple of years (or at least have the option), you may want to consider a shorter penalty length.
Happy to talk more, I'm also in Ohio. Feel free to reach out!
Post: Cash out refinance for a rehabbed property acquired less than a year ago in Mesa, AZ
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Hey Shahrouz -
You are correct on conventional financing requiring a minimum of 12 months seasoning, but as you mentioned, you've got nonQM options. Feel free to connect, I'm happy to discuss.
Post: Less than 2 years of consistant employment
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Quote from @Nick Cascio:
Quote from @Brittany Minocchi:
Hey Nick -
You mentioned an FHA loan, so I'm assuming you're looking at house-hacking....are you open to buying a property that you DON'T occupy? If so, you have options that don't require income and employment history like traditional financing does. Not all lenders require investment experience, but you may be asked to show 12 months of rent payments. That would probabyl be your biggest hurdle for this type of financing, especially if you're buying a property close to where you live currently. That's a red flag for someone trying to use a business-purpose loan for owner occupancy, so many lenders won't allow it.
If you do want to stick with FHA, you'll need at least 2 years of receiving OT since it's considered variable income. This is a requirement straight from HUD/Fannie/Freddie, so all lenders will follow that rule for FHA/conventional financing.
Hi Brittany, thanks for replying. I'm not sure I understand what you're getting at. Would they want to see 12 months of my current rent payments or 12 months of rent payments being made on the property in question? I don't have rent payments currently as I am living at home with my parents/corporate housing while at work.
I would prefer to use the property solely for investment purposes and Not occupy it. I am however open to occupying it for a year in the case of FHA.
Post: Taking a look at different financing options...
- Lender
- Massillon, OH
- Posts 996
- Votes 479
Quote from @Aaron Bard:
Quote from @Brittany Minocchi:
Quote from @Aaron Bard:
Quote from @Brittany Minocchi:
@Aaron Bard Bridges don't TYPICALLY have a prepay if you go with something like a 6-12 month term, so you can refi at any point within that timeframe. Now if you went with a longer bridge term, I have seen 6 month prepays on those.
Okay that makes sense. Thanks for your help!
No problem! Feel free to reach out if you have any other questions.
Also worth noting...I don't know that I'd say DSCR rates are insane. Depending on the loan amount, LTV, your FICO, length of PPP, etc I'd guess that you'd end up in the high 7s - low/mid 8s for a 3-unit property. Bridge rates will be higher, usually 10%+.
Right, but it would be less than a year until I refinanced out of the bridge loan so the interest rate would be negligible at that point. Am I correct there?
The payments you make during the term of the bridge are usually interest-only, so since you aren't making a typical PITI(A) payment and the term is shorter, the higher interest rate might not "hurt" as much. Just wanted to give you an idea of what to expect between bridge and DSCR :)