All Forum Posts by: David Kelly

Per Fannie Mae guidelines....

"A minimum history of 2 years of commission income is recommended; however, commission income that has been received for 12 to 24 months may be considered as acceptable income, as long as there are positive factors to reasonably offset the shorter income history."

Another factor that plays into this is what percentage of the income is commission?  If its 50% or more, then this above applies.  If its less than there may be another way.  Is it the same type of industry?

Hi Sam, 

Recommendations are key, but be sure to at least shop that lender with at least one other.  Rates/fees vary quite a bit and if you are quoted a low rate that blows others out of the water then most likely the fees that come with it are higher. Especially right now since lenders are changing gears on Investment/2nd homes.  Your best bet is to get a quote based on a rate that comes with no charge, and lower rates for an additional charge.  This will help you determine what costs are involved.  Also, find out about turn times.  Lately there has been a huge variance in turn times.  Some can do it in 30 days, and some are 3 months.  Hope this helps!

Shop around and ask what the rate is with zero cost and other options to buy down the rate.  This will help you determine who has the best overall deal.  Getting a rate is easy for a lender given that you provide them with the right info upfront.  Fico score, property value, property info, etc...  A few questions and a copy of the mortgage statement should be all they need to give you a close idea on where they are at for the day.  Let me know if you have any specific questions on this!

As a lender, I can give some guidance!  
There shouldn't be any "traps" that you need to worry about.  Any lender should earn your business, and if you find that its hard to find one, then keep calling around.  It is good to shop a couple when refinancing.  Find out about realistic turn times, closing costs (all of them!), and in general where there rates are and if they charge for that specific rate.  Find out your $0 cost rate and lower rates with a cost.  This will be very helpful when shopping around.  If you have a hard time finding someone, let us know!

I suggest just taking a look at what the loan terms would look like and what it would do to your payment.  This might help answer some doubt.  Doing a mortgage review with a lender is fairly easy.  Most of the time all that is needed is a few questions answered and a mortgage statement to review.  Let me know if you have any specific questions, I would be happy to answer them.

Good Question!  I believe if you have 2 years history in this type of position there should be no issues.  However, it will be dependent on which lender is willing to take on the task with the underwriter and do the research.  It would also depend on how you claim it on your tax returns.  Let me know if you have any specific questions thru a PM!

This type of cash out transaction is what is called Delayed Financing. You are able to do a cash out refinance for a home that has been paid cash for immediately. However, with Fannie/Freddie guidelines, any loan, heloc, or similar must be paid off first before additional cash is awarded. This is all done within the transaction (paying off the heloc). You also will be limited to fannie/freddie guidelines on LTV. If it is a Duplex investment property you will have a 70%LTV max.

So for example, you paid 200k for the home and 90k was from the HELOC and the rest from your bank account. We would be able to lend 70% of the 200k leaving a loan amount of $140,000. Your cash back would be 50k and your HELOC would be paid off and available to use again since we would pay off the 90k within the loan. Shoot me a PM with any questions.

A few things will be needed to figure out if it is worth it.  How much is the property worth, and what is owed?  If she takes additional cash out, this will affect the rate as well.  Did she look into a cash out rate?  PM me if you would like a second opinion on the Loan estimate.

@Dylan Cote

I have done this before. Let me do some research and I will figure out what our process was and let you know!

I would call the last lender that you worked with to have them look up your debt to income on that loan. Ask them if everything was the same, would you qualify for another mortgage payment on top of that. Generally your DTI on an investment property will need to be 45-50% max. To be 100% certain on where your DTI is you will need to have a lender look at it by pulling credit and getting all the info again.