All Forum Posts by: Caroline Gerardo

a) you applied for owner occupied loan and the note says if you change to non owner the PMI for the full 61 months

or

b) the loan is NonQM and the note says the PMI is until month 61 or forever.

c) the note says one rule for owner occupied can be released and a different rule for investment. There is more risk in investment/non owner therefore the insurance gives them security

How does it read?

Get your own mold inspection. Offer to move them to another unit or allow them to break the lease if you don't have another unit. Do not offer a year free, and if there really is cladosporium and aspergillus why would they want to stay? Doesn't make sense.

Location- was it near coastal air? Installation where salt spray and fog increase condensation needs to be more thoughtful than evaporation in the desert. 

Was there pvc to the exterior of unit or a drain in addition to the pan?

You will need to show gross negligence to even think about sending him a demand letter. His arguments: what did you do to regularly inspect, it's to code, the planning department inspected? Who inspected? The inspector will have a clause saying he's not responsible either.

Run Forest Run

Loan insurance? Who is providing the policy? Are you confusing with hazard insurance? Hard money does not get mortgage insurance which is sold from MI companies like MGIC, ARCH, Essent, Radian - Ask him to show you a policy example. My guess is that they are not using a MI company as a two year loan isn't compliant. 

$1025000 house vs $650000 house are in same track, same lot size, main SFR same square footage? Hard to imagine a junior tiny adu was given value in a sale- an appraiser might comp it to a she shed. Since the number of sales is so low and owners hold on as long as they can it will take a major market shift to start seeing comparables with the ADU variable.

Quote from @David Maldonado:

Quote from @Caroline Gerardo:

Homestyle/Choice/reno loans are first trust deeds not a piggyback or second after closing. This means you close your purchase and pray the appraisal with the proposed ADU has the value you think. The problem is a house+ ADU does not appraise in comparable sales to a duplex or two houses. You need to find single family with ADU that sold in your planned purchase tract that appraises high enough to make this work. Problem is there will be few or no such sales.

How much down payment are you planning? 

ADUs in my area add a decent amount of value to a property, but I understand. What would happen in a situation where if the adu doesn't add the necessary value?

As for the down payment, most likely the minimum. I believe it's 5% down for owner occupied.

IF No comparable sales meet your value, no loan available as is over 100% loan to value financing. Orcutt one sale - sold for $4000 more than similar square foot sfr, The Groves and Vista Del Sol no SFR sales with an ADU exist in past 90 days.  
The loan programs you are reading about are PURCHASE loans with 10% down not refinance ones which reduces the loan to value even further down. 
Minimum ADU cost including installation for a tiny one is $110000 and a 800 square foot one is $165000. The value the ADU adds to appraisal might be $10000 more than an SFR.
It will be difficult for you to search sold SFR with ADU as automated valuations do not yet even include them, they show as SFR.
(SFR= single family) 
There are modular kit homes that finance as a second trust deed, this is probably your ONLY choice if you only have 10% down. BUT you need to qualify with the first PITI and second being a 15 year amortization.
The market does not recognize ADU as adding much appraisal value, yet. 

Homestyle/Choice/reno loans are first trust deeds not a piggyback or second after closing. This means you close your purchase and pray the appraisal with the proposed ADU has the value you think. The problem is a house+ ADU does not appraise in comparable sales to a duplex or two houses. You need to find single family with ADU that sold in your planned purchase tract that appraises high enough to make this work. Problem is there will be few or no such sales.

How much down payment are you planning? 

Can't answer without knowing how noisy it is vs: location, price, rents, condition of side by side or town house

 @Jerry W.  Is the Teton Pass slide changing the ways you live? 

Without any working electrical which @Gabriel Perez implies it's probably also has more health and safety code violations. For answering sake: If Gabe can qualify with his IRS taxes and FICO is good and he has 25% down and the repairs are less than $10000 he might be able to go conventional and hold back for repairs meaning you need like 35% cash.

Most fix/flip lenders will not go this small of a loan and many do not like rural and won't touch them.

My guess: (Gabe doesn't give the real details) is this is hard money then refinance to something longer which is double the cost, and still he has to qualify to make it work. Hard money in a rural location is 50% cash down and again most will not go this small of a loan amount. 

STR as income without experience is likely going to fail so an Underwriter is going to raise their red pen.

Maybe if it's in Jackson you can find someone local. I own a house in WY but have no suggestions for you.

Gabe make certain that YOU can qualify full doc to exit from a short term loan by actually applying for one.

@Erik Estrada did you change shops?