All Forum Posts by: Carrianne Mucho

@Derek Daun - Finley Home Services is locally owned and operated.  Mostly good feedback from clients who've used them.  http://finleyhomeservices.com/

I've also heard good things about http://www.natpc.com/  

@Bryan Lee - Just to clarify what others have said...selling is not the ONLY way. If you really want an FHA on the property you are purchasing, yes, you could sell your current home OR you could refinance that home to a conventional loan, leaving the option of FHA available for your purchase. You can only have one FHA loan at a time. Problem is, if you refi the current residence and plan to move out immediately, you would have a higher interest rate as an investment property. Best to refi to conventional, live there for another year, then use FHA for your next purchase if that is your goal.

@Hiro Kitagawa - unless the bank's guideline requires the borrower to have landlord experience it shouldn't matter.  The qualifying income calculation typically deducts 25% from expected rents to cover vacancy and other expenses.  

@Hiro Kitagawa & @Brent Coombs - FHA does allow projected rental income to be considered for multi-units however, there are different requirements for owner/landlords with and without landlord experience. There is also a complex sustainability formula for 3-4 unit properties.

It is a good idea to interview several lenders to make sure that you choose one who understands both investment properties and renovation financing.  

Christopher Chunn - 203k is for owner occupant only. The fees are hardly more than a standard FHA loan as you have to pay for an FHA consultant. Homestyle is 5% minimum down for owner occupied and also allows investors however, you will need 20% down. With this loan, the renovation cannot exceed 50% of the ARV so you'd likely have to scale the costs back a little on this particular project.

Hiro Kitagawa , see my response above and I would also ask them both when they last did a renovation loan or how many they did last year. These are more complicated to process and you want to be sure you are working with a company or LO who knows what they are doing.

Occupancy changes the min downpayment requirement for FNMA renovation. Owner occupied primary residence can put as little as 5% down while non-owner occupied (investment property) requires 20%.

@Austin Mudd - I agree that disappearing PMI is appealing; also to consider - no upfront MI. Although this is typically financed, it does reduce your equity position.

Look into EZ-C renovation financing.  It's like Homestyle, but streamlined without a consultant for under 35K of work.  

Also, don't be scared of the consultant, part of their role is to protect you and the lender from an over zealous contractor who might oversell a job (recommending improvements that don't add value) as well as to help communicate between the the contractor, the lender, and the borrower.  

@Account Closed - Find a lender who can set it up as a Buyer or Seller funded escrow with an escrow hold-back for the demo cost.  Appraisal and loan could be "subject to" demo within XX days of close.  As with Homestyle, you would need to present a bid from a licensed/insured contractor who will do the work.  

@Abdul Q. If you are paying for your parents' housing, you may also look into claiming them as dependents for an extra tax break.  

Note - I am not a tax expert and this is not tax advice, check with your cpa.