All Forum Posts by: Chris Choe

You're most welcome!

@Andrew Garcia - I think you have some answers for @Humberto Sepulveda III

@Mark W Twarog while the traditional route would be to go to a credit union, they've been tightening on their ratios due to the slow down. Currently, the best route is to shop for a mortgage broker who has access to investors that provide HELOC products. Note that rates do change dramatically when you pass certain LTV thresholds. It's best to share your specifics with a broker so that they can price out your scenario and present you with your options.

 @Cody Burckhardt, David is right here. You can do what's called a delayed financing. It will not be treated as an R/T (rate and term refi) but the time it takes to complete will be the same. If you have all your documents, you should be able to complete it in as little as 10 days. For a conventional cashout refinance, you're restricted to a LTV of: primary = 80%, second home = 75%, investment = 70%. Hope that helps

 Welcome! I just checked, rates are in the high 4's but you'll need to pay points. There's nothing cheaper available. Happy hunting!

@Jason Miller, credit unions and local/major banks have put a cap on HELOCs after the refi boom slow down. 

For investment properties, you won't find many HELOCs. It'll be a 2nd lien to extract the equity. You'll need to shop for a mortgage broker that has an investor relationship with a HELOC investor. These days they'll go up to 90% CLTV for an investment property.

@Rufaro Chirewa

Have you started to see a decline in housing prices in Atlanta? In the DC Metro area, we have started to see it in pockets. The areas where it's always hot (DC, Fairfax, VA, Bethesda, MD) prices are staying steady or steadily increasing. This would answer your question on the equity.

I'm going to presume that even if you back out because of the rates, since Atlanta is a hot market, it'll be tough finding property with the inventory shortage. Rates are not expected to be on a decline anytime soon. We're anticipating the Feds to hike rates by 75bps tomorrow - hence the chaotic rate performance the last couple of days. 

I think the question is are you okay backing out now and starting over in a year. Backing out to start again in the next 6 months = higher rates, probably higher home price. 

@Sanjeev Vij

You should shop around for a mortgage broker who's affiliated with Rocket Mortgage. They're pricing will be much better than going direct to Rocket retail. Rocket offers 8 years fixed as the lowest term. 

 @Account Closed, you're right. If you're occupying the property as your primary, it'll be fine. Note that the lending institution will conduct a spot check on the loan after it's well funded (i.e. months after) to confirm various data points from...were you employed at time of signing, primary occupancy through bills/statements and surprise showings to the property.

To your last comment, if you qualify for the loan, there's no issue. FHA cons are the upfront MIP which is 1.75% of the value and the monthly PMI. Beyond that, rates are always competitive, property must pass FHA appraisal inspection.

 @John Bianco unfortunately, we are not. I'll ask my investor contact for a reference. Should have something early this coming week.