All Forum Posts by: David Bilandzija

Not aware of anyone that would do that.

In my experience, Underwriters/Lender Real Estate Reviewers will spot a recent listing and question why it did not sell at a price lower than the appraised value.  It may even result in a value adjustment below the list price and the appraised value, given that the property ultimately did not sell at the lower list price.  I'm dealing with this on a current file.  Property listed for $285K, was on the market for 6 weeks, it did not sell. Borrower decided to apply for a cash out refinance loan instead.  Property appraised for $299K 2 months after delisting.  Lender adjusted appraised value to $250K.   Its all about risk mitigation in the lenders eyes.  I can't see a situation where a lender would ignore a lower list price and adhere to a higher appraised value.   

@Kenzie Carlstrom out of curiosity, how is mid Oregon Credit Union underwriting your loan.  Are they looking at personal income or qualifying based on rental income/credit?

What sort of terms are they offering?

It would be a good idea to have an updated personal financial statement and credit report on file.  Our brokerage operates an internal hard money fund and we generally ask for both of these items after reviewing initial deal points.  

Basement square footage is not included in gross living area i.e. the price per square foot calculation.  A quick check of public records should reflect this.  A finished basement does add value but not to the same degree as gross living area.   Good luck.

Hi Clayton, 30 yr fixed financing rates start at 10.99% at par, 30 yr fixed financing. You've also got the option to take interest only financing on this between 1-10 yrs - rate add on of .25%, if you go the i/o route.  

Underwriting guidelines ignore debt coverage up to $500k on refinance loan amounts.  Its basically a look at your credit and the value of the property. 
 

I roll with Wealthfront.  Base APY is 4% - they'll give a you a 3 month boost to 4.5% when you sign up with a referral from an existing member.  Their App allow you connect your other accounts to their app for net worth/activity monitoring.  

Hi Samuel,

30 year fixed rate options are available up to 75% LTV. This is an asset based program with an aggressive underwriting approach for loan amounts under $500,000. As long as the property meets the lenders definition of stabilized we can ignore the debt service coverage ratio.

Hi Li,

Another factor to be mindful of is the loan balance, as it affects interest rate.  High balance loans will carry a slightly higher rate.

Conforming Loan Balances in Contra Costa County:

• Low-Balance:
  • For a 1-unit property, the limit is $806,500
• High-Balance:
  • For a 1-unit property, the limit is $1,209,750

Hi Greg,

The lower loan amount shouldn't be an issue for DSCR lenders on 5+ unit multi-family. I'm happy to be resource for you if you'd like to get some additional input.

@John Chambers I'm assuming you submitted a loan application.  Are you certain that the lender you have your loan submitted with will accept value.  An internal real estate review may undo the appraisers overstated value.  Lender's recognize human error, are risk averse and identify situations like this to mitigate risk.