All Forum Posts by: Caroline Gerardo

@Celia Lumbroso There are many sources. I know of 17 DSCR lenders in many states who offer fixed rates and 12 months reserves not 5 years payments wow that's really out there (yours must be hard money). If FICO was 720/ non owner/ a purchase/SFR/ with 20% down rates are around 8 with 8.344 APR 30 year fixed today (there are points always).

Seller wants you to "show me the money." How else can you negotiate this in action? How do you plan to come up with the cash to close?

Couple things in your way: buying house from Dad isn't arm's length transaction; $23000 annual income = $1916 a month how much credit cars/student loans/vehicles/ and primary residence payments/ is there depreciation added back to that number?; is the property rentable today and are you going to lease it?; what is market value?  There probably is a solution but need more information.

Using Chat as your expert comes across more than poorly.

YOU have to prove the money is never used for personal and the person never mixed personal into the deal. You might not know that the person mingles the money into something else. You still have to follow many of the rules. Being this your first one you need a team to guide you. No you can't buy a note from his single owner LLC or trick the system.

There still are disclosures and max rates/fees... I suggest you talk to a couple hard money guys and use their transaction coordinator/title officer/escrow maybe partner on the first one to get the forms. You will need to pay for a servicer to calculate and report or buy an app which is expensive for one single deal (set up cost/monthly contract/learning curve) will DM you

a few federal laws to research on Chat GPT: (there are also state and local)

• Truth in Lending Act (TILA):
• Fair Housing Act (FHA):
• Equal Credit Opportunity Act (ECOA):
• Fair Debt Collections Practices Act (FDCPA):
• Real Estate Settlement Procedures Act (RESPA):
• Homeowners Protection Act (HPA); Mortgage Assistance Relief Services (MARS) Rule; California Residential Mortgage Lending Act since you are in CA plus whatever state the property sits in; Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule;
• TILA-RESPA Integrated Disclosure (TRID) Rule
• Fed Flood Insurance Rules
• Mortgage Servicing Rules there's about 300
• Home Ownership and Equity Protection Act (HOEPA) and all The HIGH COST loan rules
• IRS and 1099's...
• Don't quote me. I've taught licensing classes, the laws are always changing, this is not legal advice and BP advice: yes is cowboy advice...
• Hit up Darien McDonald at FATCO and an attorney licensed in the state where the property sits (if somewhere I'm licensed I can give you a name) the contracts need to be done correctly, rates need to fit in the law, disclosures required... Don't lend to a friend, it always goes badly, this is a business. It will cost you some dough to set it up. Or if in a state I can give you an independent broker but he's going to have a hand out for upfront payment... There are fines and jail time. IT cannot be any shade of owner occupied or cha ching.

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

No HELOC, no bank. Probably only a cowboy hard money lender at 50% for a year with usury rates. The first can call the note when they feel like it or when you change the hazard insurance, giving you 29 days to sell or refinance.

 DIY with Chat  the 100 Federal and State laws that tightly regulate lending may offer you an orange jump suit.

The veteran still has time today 1/2024 to cure the modification, and take the property back.