All Forum Posts by: David Kelly

A bulletin today has been posted regarding second home and High balance loans with Fannie/Freddie.  This will affect pricing on rates.  Meaning your 3.5% quoted rate today may not stay the same at some point in the future.  We are not sure if investors that offer our rates are already pricing in the adjustments, but if you are currently looking to lock in something on a property like this, I would look at doing it sooner than later.

My only guess is that investment properties will at some point be affected, but I don't have any info of it happening at this point.

Utilizing a co-signer is perfectly fine on an FHA loan. Keep in mind a cosigner may or may not help. Credit score and liabilities will come into play so if that is not in line it may be better off without. Reach out if you want more specifics on how to navigate this.

Your current loan will have an impact on this as well by being able to lower your rate (if its currently higher).  You may be able to take equity out and keep the payment the same.

@Aubri Paredes Hi Aubri, I looked in to a VA option on the renovation loan and do not have one. We do however have a renovation loan that will work based on the info you have given me if you are interested.

There is no protection in this scenario.  All you can do at that point is figure out what lender will take your loan with the best terms.  

@Tanner Kenneth Jenkins

Regarding your other question about adding a parent. Yes, you can add them on the loan and as long as they qualify themselves without your income then you should qualify. Keep in mind though that they will also be bringing in a different credit score, and other debt that may hurt the approval terms. When you add a borrower you also bring in all of their debt/mortgages to qualify for DTI.

If you are paying cash you will have two options on recovering some of the money back. If it truly was paid cash or out of your bank account then you can do what is called delayed financing if you are within 6 months from the purchase date. You can recover up to as much as what you paid plus the closing costs, or, whatever LTV guideline you are limited to depending on the property type. On an investment property, conventional financing will allow up to 75%LTV on a 1 unit, or 70% on a 2 unit. If its primary residence then 80%. This means that if you fix up the home and it brings a higher value do not assume that will mean you are going to get more than what you paid. Because there are still LTV guidelines that need to be met and you are limited to what you paid.

After 6 months the limitation on the purchase price drops off, but you still need to abide by the LTV guidelines based on what the home appraises for.

Hi @Aubri Paredes Is this going to be a primary residence?  Also, how many units is the property?

@Matthew Kirkwold

A lender can offer any interest rate they want. There is a certain cost (or credit) however that comes with each rate. The lower the rate higher the cost, the higher the rate less cost out in some cases a credit that can be applied towards closing costs. It’s up to the lender if they want to pass on those costs to the borrower or not. Each lender has its limitations on how deep they can go before they have to start charging the customer.. That’s why When shopping for rates make sure that you get all of your rate options spelled out with each cost associated. Some lenders like to advertise rates with a cost and some not.

Be sure to look at closing costs overall as well because if someone else is charging less that means you could put that difference towards buying the rate down further with them.

Hi @Paras Jain  

Conventional products will allow you to do 75% LTV on a single family investment property. The property would need to be quit claim deeded into your name for closing however. I sent you a PM