All Forum Posts by: Carrianne Mucho

@Joshua Fulenwider - FNMA does not allow the owner or an owner's relative to complete the work.  Even if they are a contractor.  The contractor must be unrelated.  The reasons for this are obvious, the lender needs to know the bid is accurate and there are time limits for completing the work...generally, a contractor will complete the work much faster or at least on schedule.  An owner may take their time and not finish before the deadline.  

With a rehab budget under 35K, you could look into a streamline renovation loan product.  Few companies offer this (I know of one), but although the criteria and process are similar, it is less paperwork than Homestyle.   

@Jay Hinrichs & @Account Closed (or anyone else who cares to chime in) - What is your theory about the effects of employment statistics on the housing market?  We are seeing unemployment numbers decline, hourly wages now increasing at 2-3% and yet the workforce participation rate is only 63%.  If another 15-20% of capable adults decide to re-enter the workforce, do you think this will increase demand for housing in spite of increased ownership costs (interest rates)?  Do you think this would merely be an offset, or does demand continue to outpace supply?  In California, demand is outpacing supply already.  Every day, I speak with Realtors who are begging for more inventory.  

Joshua Lyon -have you considered taking it out of the LLC, get the financing, then put it back in? I have had clients do this with success.

Vincent Harris and to your question to Wes Blackwell , I think he might agree the best first step is to get prequalified. Not only does this make you more appealing to agents and sellers (they know you are both qualified AND serious) but it gives you confidence that you are comfortable with payments and cash to close. When you have a destination (goal) in mind, the first point on the map you must know is where you are beginning.

Vincent Harris there are basically two kinds of investing strategies. You have personally experienced an appreciation market - gaining equity in your home. This is our market in California. The cash flow for cheap properties in other parts of the country can sound tempting especially when you can purchase for a fraction of the cost of a home here. Just remember that there is a trade off with everything and that property may be worth the same 5-10 years from now that you paid for it. Personally, the risk of losing an entire years profit due to an unforeseen maintenance issue along with paying higher aquisition costs as a percentage of value (since many fees are fixed regardless of price) makes investing closer to home more appealing to me. Besides that, I'm kind of a control freak so I can't imagine not being able to easily check up on things. If you have questions about financing, I'm happy to be a resource.

Gilberto Grajeda you sound like you have the proper motivation to make you successful! Happy to be a resource for financing questions as I'm in the Sacramento area.

Steven Tierney Homestyle IS available to investors but currently for 1 SFR only, not multis.

Dennis Cobos I will be happy to show you a no pmi option but as was mentioned by others, the trade off may not make the most sense for your situation.

Kelly Magreevy it's wonderful to hear that the company is attempting to work with you. I would have guess that you'd be out of luck since a co-signer is just security for the lender and doesn't necessarily need to own the property. If you do get stuck with it, dig up bills or maybe the solar company can provide you with some marketing materials to help you sell the future buyer. Typically the payments will have to be included in the buyers DTI unlike utility bills so you are best to find a cash buyer. Good luck!!

Sean Gleason the Homestyle loan is available to investors with 20% down. You do need to use a GC and you will have a max of 6 months to complete the work.