All Forum Posts by: David Kelly

In the end it is ultimately up to you and your unique situation.  A lender or agent can give their own advice but they definitely do not have a crystal ball to know what the future holds for interest rates.  That would be like calling a stock on if it will go up or down.  Its always a gamble.  

@Eric Rodriguez

A great way to get your first home is by using an available grant program that will keep your initial investment low, and keep more in your bank account.  I have a program that is usable in 48 states and allows for up to $22,000.  Its a 4:1 match on funds that you can bring to closing.  If you have $3000, I will add an additional $12,000 (up to $22,000).  Fully forgivable after 5 years, otherwise prorated if you sell or refinance sooner than that.  You may have other programs available in your state as well, but this may be a great option.

@Justis Davidson

Utilize a down payment Grant and buy a duplex. Rent out one unit.

There is a four to one match grant program available for FHA or conventional first time home buyers. Its available in 48 states. You bring $5500 to closing and we add an additional $22,000. It's a fully forgivable grant after five years of living in the home. This may or may not work out in your long-term goals but once you're established you can move out sooner (rent out both units) and the grant money is prorated so not all of it would need to be paid back. 

@Cody Burckhardt

You are able to do what is called Delayed financing. Since it was paid in cash you can immediately do a cash out refinance with normal LTV guidelines. The cash out may not exceed the purchase price plus closing costs. Reach out if you have any questions on this.

@Skyler Heimer

I have a WISH Grant available for up to $22,000 as a forgivable grant.  Its available in 48 states.  Please reach out if you are interested in going over the details.

Hi Dan, 

Delayed financing will allow you to cash out up to 75% on a 1 unit or 70% on a 2-4 unit.  As a lender we will need to see where the funds came from. Depending on the funds used you may need to pay that off first within the loan and then any additional money left over is available to be disbursed at the closing table. Keep in mind though you cannot get more than what the purchase price was along with the closing costs.  I have done this many times before and its a similar process as buying a home.  Feel free to reach out with any other questions!

 Keep in mind that if you rent out rooms in your home it will not be considered rental income when you qualify for the next one.  So you will need to qualify for both full mortgage payments.  It is called border income and only a couple scenarios work when trying to use the income.

What state are you buying in?  Depending on what type of job you have there may be some extra benefits when you purchase your first home.

@Laura Johnson

Be careful. If someone offered you 4.75% with a small charge I would contact them again today to see if that is a lockable rate and cost. Most likely they quoted it on a good day and probably cannot honor it today.

It seems like every deal I have now I go up against another lender they “shopped” and someone offers something else that sounds better but in the end it is not. Look at all the numbers involved. Ask for a loan estimate. If you would like a second opinion on the numbers I would be happy to keep them honest for you.

Your income as well as your moms income will count when buying a property together.  If you did this and plan to refinance her off later on you will need to qualify by yourself. If you don't qualify by yourself now, then you will need to make more money later on when you plan to refinance.  

You also need to take into account that not only will her income be used, but her bills as well. If she is living tight already that means there are bills and these will be brought into the loan which count against the overall DTI for qualifying. Your best bet is to find a grant that allows you to cover most of the down payment and closing costs on your first purchase. And get pre-approved with your income.

We have an available Grant (available in 48 states) that is a 4 to 1 match on whatever you bring to the closing table and can get up to $22,000 fully forgivable if you live in the home for 5 years. For example, you bring $3000 we add $12000.  Check your states programs as well, but in most cases they usually need to be paid back when you sell or refinance.  

 Yes, it can be done.  How old is the appraisal and is your current lender agreeing to release the appraisal to another lender (via an email)?  If it were to come to me I would need the lender to write an email that they are transferring it over to my bank.  If we get that, we can use it.