All Forum Posts by: Caroline Gerardo

203k is a cookie cutter loan. There are two shades of 203k, no major overlays or differences in lender shops. It's full doc with IRS returns 2 years/W-2/1099/paystubs/bank statements/ID, your FICO is part of the rate, you must have a licensed contractor, all require impounds and PMI forever. Loan limits vary by county but you need a JOB in the county. Risk is not getting the work done during the timeline. This is owner occupied only. You don't need CHAT GPT

Are there are two property tax bills and two separate lots? Will county planning allow adding a "mobile home"?  Will you have two water lines two sets of utilities? County planning office not google allows you to file a 433A and make it real estate with what type of foundation?

Most HELOC lenders will NOT loan on mobile homes.

Adding a ADU to your two lots is a different animal than adding a separate unit on it's own lot. Dividing the lots into two legal parcels with two stand alone units will appraiser much higher than adding a ADU or adding a mobile home.

Look into prefabricated homes rather than mobile and having two sets of utilities and separate lots. They will rent higher and appraise much higher.

Once you put a mobile home on land it devalues by 50%, the cost to install will NOT be the same as value to sell or what a residential appraiser says it's worth.

Hard money is only going to be for 18 months and they might only give you 65% max of valuation NOT the cost to construct. Then you have to sell as a refinance appraisal to conventional is going to come in much lower than the cost to build.

The plan is not a fit for how lending works.

This part: "I think after the addition, the property would appraise for 250k." is the flaw. Find comparable sales that closed with a single family plus your same mobile home that closed WITH A CONVENTIONAL Loan in the past three months nearby/same size, my guess there are none.

Run.

No lender charges for a pre-approval letter. They will charge you for the credit report when the loan closes (cost $80-90 for mortgage report). What is the $250 FOR?

I know of NO credit card company that grants a LLC 0% for 18 months do you? Maybe you can get $10000 here and there for six months but all credit card companies require you guarantee as a person and use your personal FICO score and will report. Can you buy the land/get permits and plans even approved in a year?

Small claims by Zoom- upload all your proof AND have it ready to show as jpegs or power point to the "judge." Format matters as the judge isn't a real judge just an appointed attorney. The judge might not have access to the papers uploaded so be ready and research by calling the court to find out the backup.

You have to accept the failure that a rich kid going there for a surf holiday was NEVER going to mow a lawn, he has no idea how to start the mower, this part is a FAIL on your screening process. He had no job? The judge is going to ask you WHY you rented to him, have a businesslike answer.

Get the gas company inspection done today, they may not come for weeks AND a plumber to write a report that there is no leak, save this for the actual zoom call at judgement day to show live if they have some gas leak accusation. Get neighbor above to say his headaches are from partying in writing- smell was weed and he was seen at local bar...  Go full on Magnum PI (not the one selling Reverse Mortgages lol) to prepare but these papers you hold as your cards. 

I don't know Hawaii law but I believe the Dad will be allowed to appear and he's going to sling mud. Do not lose your cool. Son probably won't appear and you win. Hopefully the judgement also goes on Daddy Warbucks. 

No more talking to Dad or son - only emails. Do you have Dad's address to serve him? 

The amount of money is small. This is a great learning experience, do not lose sleep, get every fact on paper with illustrations. 

After it's over let us know how it went and how Hawaii courts run the virtual hearing.

winks 

 :) 

Sharing the Freddie Mac Worst Cities in terms of declining values. Boom towns zoom towns going down. 

Probably time to sell in Boise.

@Zan Rease so you have a low interest rate first and you don't want to refinance and pay it off. Say you owe $200000 at 3% your payment is $843 then you borrow a $200000 HELOC your payment is $2273+ 843= $3016 total principle and interest not including tax insurance HOA. 50% owed is 3% and 50% is 11% so your rate averaged of the two is 7% which is maybe more than a cash out refinance today which is around 6.875 APR 7.011. If you are only using the HELOC for a couple months, no problem, but long term if rate goes to 22% you lose as averaged/blended is 11-12% so a bad choice. HELOC is a bandaid not a long term plan, IMHO

Rates and examples are not commitment to lend

@Zan Rease A HELOC is second position. 1. borrower had to use title insurance and have/had a first and not changed the deed DIY 2. Are full documentation with past two years IRS taxes net income 3. FICO standard desired is 720 mortgage middle score/ some will go lower with low DTI 4. HELOC is a computer program, borrower fits into the boxes, little to no exceptions. 5. prime + 2 or 3 for owner (prime is 8.5 today) max 22% APR for owner occ is 11.011 APR non owner 13.441 The cost is low to set up. Often an automated digital appraisal ~ so the value isn't going to hit the highest range. HELOC is variable rate like a credit card amortized over 15 years. HELOC can be closed if value declines or credit declines...

This is not a loan commitment just the general rules.

There are also HELOANS and fixed rate seconds. 

Say you have a 3% first mortgage maybe this makes sense as short term loan when you blend the numbers together.