All Forum Posts by: Caleb Smith

@Chris Ruggiero

https://www.biggerpockets.com/topics/814771

@Chris Ruggiero using your spouse on the future FHA would be a good strategy; especially if the current one is in your name.

I'm currently trying to move from my current home (conventional mortgage) and apply for an FHA on a new property. I've struggled with lenders..... or should I say, finding the right lender. Many are questioning my intent to live in an FHA. You will need to justify good reason to move into the new property, based on what is "reasonable".

I reached out awhile ago to BP forum and got some good information back....... I’ll hunt it down and post it here.

@Randall K Compton it's nice to know I'm not the only one. I like your idea, about flexing more on the more expensive multi-family and maximizing each FHA loan. I'll defiantly attempt to put that strategy into play.

Thank you for your input and joining the conversation.

@Marshall Martinez good article, I’ll look into those areas a little more. It definitely gives me some type of suggestion on a way to work around my issue, if not ideas for my proposal letter.

Thanks for your help.

@Marshall Martinez I'm tracking! Would it be best to attempt to refinance out of the FHA prior to the end of the year; assuming I have built in some equity or the market has appreciated.

How would you suggest trying to work around a problem like that? I wasn't aware that an FHA would hold you back after you passed the 1 yr mark. I have heard that about VA loans though.

So you have any input?

@Steve K. Good value add Sir. Great response to his question and I agree 100%

@Jacob Lapp Buy (BUD) because everyone love Tacos and a Corona w/lime. Lol

Serious, the above is a true statement. Lowest levels in over ten years and it’s a dividend stock and major manufacturer.

Much like others have said, stocks are and should be long term unless you know what you are doing. Let your 401k management handle you funds if you don’t know what you are doing.

Much like BP and real estate, stay focused on one thing, and educate yourself by reading books. Being knowledgeable about stocks, business, and economics will make you a stronger investor.

SnowBall Effect by W. Buffet is a good first book as you jump into learning.

@David M.

Yes, I agree with you on all points. The conventional loan that you are speaking of, is the exact same problem as the FHA. Most don't believe I will downsize. My main goal with an FHA is to lower my down payment to the least amount possible. I just want to get into the home, especially a multi-family home.

By using an FHA loan, I can save reserves to invest in another home in the same year. Whether the second home is a conventional, vacation, or investment loan, is still to be determined; ideally I'd want to invest as little as possible in the down payment.

(APR) Interest rates are definitely something I'm looking at, but I plan to refinance once I add more value to the properties I'm acquiring. That being said, I'm not concerned too much about PMI's unless it effects my CashFlow on the properties. If it does, and it's a good value, I'm willing to push through the short term pain to achieve the long term goal.

Hopefully that better explains my intentions and reasoning in wanting the FHA loan. Thule issue isn't just convincing the bank, that I will

Actually be living in the property and “down-sizing” to do it.

Thank you for joining the conversation.

@Marshall Martinez I'm just trying to get one FHA. I'm trying to get into one each year.

My current problem, is that lenders do not believe that I will “downsize” into an multi-family home or smaller single family home, from my existing single family residence. They are arguing that the average person would not move out of a more expensive/larger residence and into a “smaller” multi-family unit or single family house.

to resolve this and at the recommendation of a few on the post, I’ve began doing a mass survey of all the lenders in my area. I’ve got my list together and I’m going to start contacting them one by one to identify the strengths and weakness of each lender, while identifying other opportunities that each has to offer me to achieve my goals.

Hope this clarifies my situation for you. Thanks for joining in on the conversation. All input is helpful

@Greg Dorn I’m interested in the lowest down payment and using my funds the extra funds I have for other types of loans. I’m trying to maximize time and my available cash. I’m trying to avoid 20-25% down payments. I fully intend to refinance the properties when the time is right.

Some credit unions have offered loans at 5% conventional or Vacations around 10%. I just don’t want to be in the “investment” only category at the rates 20-25% rates. Especially as I grow. At CA prices, that’s a hefty pill to swallow and limits my scale ability. I’d rather save that type of down payment for markets out of state.

It sounds like I need to pound the pavement and work my lenders in the area a little harder and seek out more opportunities.

Thank you for your time and input.