All Forum Posts by: Brandon Beardt

 Hi Diwas,

I'd recommend using conventional financing to purchase your neighbors house if you're planning on occupying it yourself. That'll allow you to put down a lower down payment while also benefitting from conventional pricing. Also, if you're close with this neighbor, see if they'd consider selling it to you off market without any RE agents. That'll save them quite a bit on realtor fees and what not, but maybe they're already working with one. With conventional financing, the lender will look at your DTI and if you're keeping your old primary as an investment property, they'll most likely hit you with it. You can go the Non-Qm financing route where they can qualify you a different way without looking at tax returns and what not, but the rate/pricing will be higher. Just something to consider. Best of luck to you!

 Hi Lisa,

You have a few different options. What are your concerns exactly? Are you only concerned about down payment, or DTI as well? Regardless, Non Qm financing (such as DSCR loans) for investment properties have been very popular as of late. The process is straight forward and the lender won't have to look at any income verification documents. You qualify if the rent for the new investment property exceeds the PITI payment. You can go up to 80% LTV, given you meet their criteria but generally 75% gives you the best rate/terms. If it's just the down payment that's your concern, conventional financing may be your best option, then again, I don't know your full situation/scenario. Hope this helps! Don't hesitate to reach out if you have any quesitons.

 Hi David,

Sorry to here you've had a bad experience in the past with loan brokers. We're not all bad hahaha. Like Chris said, rates have been going up rapidly since the beginning of this year and there's no sign or indication of it stopping anytime soon. Plus, they fluctuate daily, so what's being offered today most likely won't be tomorrow unless you lock it in. Hope this helps you out in some way. Best of luck!

 Hi Ryan,

I would confirm with another mortgage broker about your DTI issue. Depending on what your debts and income are, it's possible they missed something or are not adding certain expenses that could added back on your schedule E. With that being said, Non-QM lenders may be your next best bet. This kind of financing offers a variety of different programs that could help you qualify (bank statements, alt doc, even programs that allow >50% DTI, etc) but will come at a higher price/rate than conventional financing. Don't hesitate to reach out if you'd like to learn more! Best of luck.

 Hi Jorge,

We work with fix and flip lenders that lend mainly based on credit, experience, and the property itself. Usually the more experience you have, the better terms/conditions you'll get. The maximum leverage you can receive is based on the type of rehab you're doing (standard or extensive rehab) and will most likely be the lesser of either 85% LTC or 70% ARV LTV with 100% of the rehab/budget being financed by the lender as well. If you have any specific questions, I'd be more than happy to help! Just let me know. :)

 Hi Jason,

It would depend if the numbers make sense on your end. Is the property you're considering refi-ing your primary? Or another investment property? If investment property, you'll have to do the math to make sure the cash flow still works for your comfort level. I don't doubt rates will continue to rise (even though we're still at historical lows) and we've been working with a lot of savvy investors who have been refinancing and purchasing additional investment properties. There's a TON of cash out there in the market/economy that's there for the taking and some great loan programs designed for investors (our company's specialty ;)). Don't hesitate to reach out if you have any questions! :)

 Hi James,

I'd say the best way for you to access the equity in that rental property is through a DSCR loan. With this type of financing, the lender's not going to ask for any sort of income verification documents like W2's, paystubs, or Tax Returns and you're usually maxed out at 75% LTV. You qualify if the rents your receive are greater than your PITI payment. It's a cool niche and the underwriting process is much easier as there's less due diligence on the lender's side. We've done many of these over the past few years and they're a great resource for savvy investors to utilize. Don't hesitate to reach out if you have any more questions and good luck!

 Hi Jon,

At first glance, it seems as if a portfolio loan would best fit that scenario. That being said, however, some lenders do require minimum property values with that type of program. The average price of one of those homes equates to $55K which can be a deal breaker for some lenders. Other than that, you can easily get a 30 year fixed mortgage with a portfolio loan at 75% LTV (assuming DSCR >1). Don't hesitate to reach out if you have any questions! Wishing you the best of luck.

 When did you purchase the property? The other respondents are correct in that most lenders do require a seasoning period for investment properties and there's little that can be done about it. The earliest I've seen and worked with is 90 days seasoning and for value, the lender would use the lesser of the acquisition price or appraised value (Non QM loan). Hope this helps! Don't hesitate to reach out if you have any other questions. 

I've done deals with lenders who would lend on commercial properties and don't require income docs like tax returns or W2's and don't care about DSCR as well. The rate is a bit higher but overall the process is straight forward and fast if you get docs in quickly. The longest part of the process with them in my experience is usually the appraisal. All the lender would need to see are the leases, entity docs if you're closing in an entity, verification of funds, appraisal, things of that nature, etc. It's a faster process BECAUSE there's less due diligence. If you're rate sensitive, it may make more sense to go conventional if you can qualify, but like you said, you may run into timing issues. If not, Alt-doc/Non-QM loans are another alternative as you don't have to provide as much. I'd be more than happy to take a look if you want to DM me.