All Forum Posts by: Daniel Hennek

I just had someone come into my office pitching me the Moneymaxaccount.  Same thing repackaged 16 years later I guess.  Same sales pitches.  When I was looking into it I found this thread and honestly thought some of the responses were AI generated until I noticed the posts were from 16 years ago!  Reading through it's very obvious they were engaging in fake account review BS.  How many anonymous people came into this thread just saying "it actually works" without any details about how it works.  Nobody can just put up some math and show how it works.  They default to "well its complicated software so I couldn't possibly"...but you should be able to explain why you are saying what you are saying....shouldn't you?  Math is math, if you present it to me I'll see it that it works...or it doesn't...hmmmm

It sounds like you need to find out what a mechanics lien is...

Gonna be pretty hard with that price.  90k with $2,000 in rent sounds nice though!  Why are you two weeks out looking for a lender though?  And why does it need to be private money?

Not many private money lenders working under 100k.  We see minimums of 200k, 300k, even 500k sometimes.  You might be better off searching for another investor with cash.  Hard to source that kind of cash flow; if I knew you and you were in my town I might thrown down on those kind of numbers.  On a 90k purchase there's just not much in it for us as a lender because we do expensive professional work and that impacts smaller loan amounts significantly.  We'd have to charge you around 6 points up front to break even on the the transaction, and if you know lenders they don't take all that risk just to break even.  Below 100k for lenders has always been an underserved market, even more so when the occupancy is investment.

If you've got other leverage there might be a better way than to look for a 70,000 or so mortgage.

Really what you need to do is talk to someone who can assess your overall situation and talk with you about your numbers.  You can look at this from many angles and what is best for you is based on your ability and desire to do certain things.  You don't know what's possible until you have an in depth conversation with a professional.  It's just a phone call and many people such as myself are happy to take a few minutes with you.

Brokers are going to be your best option to find the lowest rate.  There is no arguing that fact, though many loan officers working at banks and "lenders" will do so until you can't stand listening to them anymore because they don't like admitting they're not the best option.  And hey lets be fair, they have to eat too.  Brokers cover the spread and lenders change their rate sheets all the time jockeying for position and managing their balance sheets.  Brokers know where the deals are found and who's pricing themselves out of the market to slow down their operations.  One lender might be the lowest today and spike two weeks from now when the rest of the market does not.

Daniel Hennek

Principal Broker - Montezuma Mortgage

Licensed in CO, FL, and GA

The pricing range for investment properties right now is astronomical. I ran your scenario through my pricing engine to immediately get to the bottom of this question ( 741 FICO, 105,000 value, 75,000 loan, cash out, investment, single family, conventional loan). The bottom of the range with 30 day locks has First Savings Bank wholesale quoting 4.75% (APR 4.866) for zero points. Moving up that range, but sticking with the same rate of 4.75%, you have Caliber quoting 3.491 points (5.193% APR) and Plaza at 4.023 points (5.246% APR). Inside that range you have many lenders quoting in between zero points and 4 points.

Caliber and Plaza are both know to be competitive in the wholesale space.  On primary residence transactions right now Caliber is very strong, near the top of the list.  So you can see that pricing different scenarios can have a big impact on what lender is most competitive.  Without getting into all the details of why there is this huge range for investment properties I'll just tell you to shop around, maybe find a broker like me that can see the range instead of going with a bank or direct lender that doesn't cover that range very well.

You also have to look at closing costs the right way.  It's extremely simple and many people fail to break it down to the basic fact that the lender has control over the rate and the lender fee.  They are tied together and the only things the lender truly has control over.  In my example above you have one lender with a 4.75% with about a $1,000 lender fee, and another with a $4,000 lender fee for the same rate.  Those are the only things you need to compare when shopping around "for the best deal".  All other costs are going to be nearly the same with a few exceptions that don't make a significant difference.

Also, some weird things were said here so don't take everything you hear from an internet forum as gospel.  Some people make comments that make no sense because they lack proper context and understanding.  You can avoid that problem by finding someone to speak with in person and forming a relationship with them.

You're likely going to be looking for a Conventional mortgage when the time comes, that is if you're looking for the best rate.  That means you can find all the information in the Fannie Mae selling guide.  Google it.

Title seasoning is 6 months if you bought the property with a mortgage; search "title seasoning" in the selling guide. There are LTV matrices that will tell you the cash out limit; search "eligibility matrix". On an investment property LTV is always capped at 75%, it's only 80% for primary residence cash out refinances.

As far as answering your question goes.  You can pay it off by coming up with cash...not sure what you're looking for with that question.  It's a loan with terms that need to be followed or they'll foreclose.  If you can't figure out your exit plan maybe you're not ready.

If you cannot qualify for a conventional loan that might be a problem, but there are other loan types.  If you're wondering about this you should probably talk to a more traditional lender before moving forward to ensure you are able to qualify for a traditional mortgage on it.

You ended up choosing a bad company and a bad Loan Originator, simple as that.  The experience you describe is complete and total incompetence.  It is your Originator's job to not only manage your timeline and ensure you can close within your rate lock period, but also to explain all of this to you UPFRONT.  It's also not just the Loan Originator that did you wrong but their management all the way up the chain.  Management is always monitoring, or should be monitoring, pipeline activity and loans that aren't moving should be followed up on for a variety of reasons.  

So, my advice is that you shouldn't do anything else with this company other than withdraw your application and write a complaint to the highest level you can at that company.  A new lender can probably step in and close it with just as little effort and time at this point.  If there's an actual reason your loan was not processing then you should be made aware of it.  Have they needed documents you have yet to provide?  Is there some title issue or other issue that needs to be resolved?  What is the reason your loan was not moving forward?  It's not a mystery and you shouldn't accept an incomplete and non specific answer.  Get the specific answer.  If you want to press them then press them about the specific things that happened or didn't happen and when.

FHA allows 2 years from the discharge date. You could buy a multi family with FHA as long as you live in one of the units.

Conventional loans are 4 years, that is why you're hearing that.  There are some Non-QM loans that allow less than 4 years from discharge of chapter 7 BK if you have a good enough credit score and large enough down payment.

Talk to a mortgage broker in your area as they'll usually have the most options.

You're assuming lenders have to be either a portfolio lender or a Non-QM lender.  Lenders are businesses and can decide what loans they want to offer.

Non-QM refers to any product that is not a Qualified Mortgage under the Qualified Mortgage Rule.  So, portfolio products are Non-QM most of the time but can be a QM in certain cases.  

As far as what's better for an investor, it's all case by case.  You're best off finding someone you trust, who's competent, and has a strong product offering.  Then discuss your needs with them.  The most important piece of your puzzle is the MLO who's going to be guiding you.