All Forum Posts by: David Kelly

@Katie Huynh

Rates vary depending on what others have said above. Also, the fees that may out may not go with rates are a big factor. If you would like a second look I would be happy to review your current offer.

Conventional lending.... If the home was paid in cash and have OWNED it less than six months then we would be able to do Delayed financing. This means that you cannot get more than what was paid for the home plus closing costs. Keep in mind that if you paid it with the HELOC money, then that is where the funds will go. 6 months of rental history is not a factor. Its six months of ownership. Once you have owned the home for 6 months you can do a cash out refinance. This allows you to get more cash back than just the purchase price (as long as the LTV guidelines are met). LTV guidelines are still a factor as well on delayed financing. Meaning it is not a guarantee that the lender will get the full purchase price plus costs. It will have to appraise out higher.

Correct, we are able to pay that credit card within the loan itself instead of you paying it after. This allows me to exclude that payment and helps your DTI. Its pretty common practice on cash out refinancing. It allows an easier way to pay off the debt as well. We get the payoff good thru a specific date after closing and make sure it is enough to pay the debt. You then receive a check from the title company made out to that credit card company that you put in the mail after closing.

Hi @Jack Rozema

If you are worried about DTI, just pay off the credit card within the cash out refinance. There is no need to borrow money from someone. If you have equity to pay it off within the loan then as a lender we can exclude that payment which will bring your DTI down. Also, if you have an installment loan that has 10 months or less we can exclude that payment as well. How much is the credit card payment that will be removed? This combined with a 10% raise may qualify you for the cash out. Reach out for more detailed questions or analysis.

Hi Steve, 

Is this a 1 unit investment property?  

You have the option to buy down the rate.  Did they offer a rate without any additional points?  He is saying 3.25% is going to cost 1.25% of your loan amount above all other costs.  $2437.  plus escrows, title services, appraisal, state taxes/recording fees, and the $995 underwriting fee.  They should provide a Loan estimate to make this easy for you to breakdown.

Always.  Feel free to reach out.

@Zach Gulbransen

Technically you would have to owner occupied the house within 60 days of the closing. 

@Nick Brown

Conventional loans require 15% down on a duplex. Even if it’s primary residence. 

FHA would allow you to do 3.5% down.

Your terms stay the same when it is sold.  Setting up autopay and other things can vary however, which can be a pain.  Unfortunately in most cases the loan is sold and there is no way to control it.

When purchasing under conventional guidelines you can supply a signed lease agreement. That along with a 1007 rent schedule to show what rental income is in that area with similar homes.  As long as your lease agreement is in line with those number then the rental income can be used.  Given the lease will be starting shortly after (not sure on how soon exactly).  At that point you can use 75% of that income.  You may need to show proof of deposit for first months rent or security deposit as well.