All Forum Posts by: David Kelly

Our portfolio option allows for a borrower with a 720 minimum fico score and a Debt to income ratio at 43% or less to get this program.  I lend in 48 states!!

Rates on two different ARM products amortized over 30 years for the payment:

3/6 ARM - 6.99%

5/6 ARM - 7.25%

These only require a 1 point charge for these rates (1% of the loan amount)

Please reach out today for a quick closing!  

As a lender, I am seeing more investors choosing ARM options with low "points" upfront. Conventional financing lately has been coming with larger points to get a rate.

Are you looking at multi units?  Conventional financing only requires 15% down on a 1 unit investment property.  The one thing I have been running into is finding a rate with a low points option on these types of properties.  Its possible but with the right lender you can look at all the options.  

I agree with Randall.  There are way too many variables to look at for each situation.  Guidelines are not all the same.  And not all of these on your list are going to be able to be underwritten with conventional guidelines.  Hard money loans are not conventional, as well as commercial.  Every conventional lender out there may or may not offer a new construction, bridge loan, or even an investment property option.  

I would search previous posts for all of these to get an idea on what you may be looking at.  If you have a specific example, you can reach out to me or ask the BP community.

FHA with a down payment assistance program. There is a National program called WISH. It allows for up to $22,000 fully forgivable grant after 5 years. Its a 4:1 match up to 22k. So you bring $5500 to closing and the additional 22k is added for a total of $27,500 towards down payment and closing costs.

You need to qualify based on the income that you have where you are currently living.  

I am curious about your 5% conventional without any PMI. This is a requirement for a purchase going the conventional route when there is less than 20% down. Did the lender explain how this is done? This would definitely be the better route since there is not a funding fee like FHA has as well as the mortgage insurance requirement.

@Kristen Silva

The easier route for a lender is to not have a HELOC to document.  Will there be a zero balance through the loan process before closing? If so then that means there is no payment to count against your preapproval amount. Either way is fine but if you do draw on that HELOC before closing we will have to include a payment.

@Nicholas Aja

The refinance process is similar to any other refinance. We just need a payoff from your current loan.

You are able to do a conventional cash out refinance earlier than 6 months if you paid cash for the property. This is called Delayed financing. However, it limits how much cash back you can get. It cannot be more than the purchase price plus closing costs, no mater what the value. So if you renovated the property and would like to get the full LTV back at its current value then you will need to wait the 6 months.

You can cash out on an investment property without a tenant. The only thing it will affect is the Debt to income ratio since you will be taking on the full mortgage payment against your DTI. If your income is fine, then there should be no issues. In some cases, I don't need rental income to qualify, I will leave out all that documentation to make it a smoother process for the client. It can however change some of the payment/cost factors in which case I will request the docs to lower the DTI.