All Forum Posts by: Debra A.

 YES! I just realized I have to update this now lol I'm like seriously!? Thank you very much for the complement though!

Hi there! I just wanted to give a brief description of the "HomeReady" Loan program, since I've seen a lot of questions about these types of lower down-payment conventional loans. 

So, the HomeReady program is a conventional program through Fannie Mae, that allows as little as a 3% down payment on a 1-unit owner occupied property. The borrower must meet specific income requirements to be eligible. They allow a max Loan-to-value of 97% and a Combined Loan-to-value of 105% when "Community Seconds" are used. If there is a non-occupying co-borrower on the loan, they require a 5% down payment minimum. 

Some Eligibility Highlights:

- must meet 100% of the Area Median Income (AMI)

- No income requirements for properties located in what is deemed a "low-income" census tract . A "low-income" census tract is defined as an area where the median tract income is no greater than 80% of the AMI 

- Generally, there is only 620 minimum FICO score required

- There are no minimum borrower contributions required for a 1-unit 

- there is only a 3% minimum borrower contribution for a 2-4 unit property and maximum LTV

- Purchase borrowers must complete a homeownership education course 

Some Benefits of Going Conventional: 

- much more flexibility with the Private Mortgage Insurance (is not required to be on for 11 years like an FHA loan)

- Have the option to have Lender-paid-mortgage insurance, which can have a lower monthly payment

- if you gain equity quickly, you can have the home appraised to see if you meet loan-to-value requirements to have the Mortgage Insurance dropped earlier without having to refinance 

- Non-occupant co-borrowers are allowed! 

This is just a brief summary I wanted to write up and share. I hope this helps answer any questions anyone may have! 

Sincerely, 

Debra Denimarck

Research shows that consumers who shop around save the most money on their mortgage. So, yes, I would say to shop around or work with a broker who shops for you. They often can also get special pricing and certain fee's waived or comp'd by the lender that you may not get on your own. 

CALL OR TEXT 631-352-6801 to apply now! 

Get SMART with your next purchase with loans made specifically for experienced RE Investors (Investors with at least 12 Months experience).

BENEFITS:

- 80% LTV on Purchase & Refi 1-4 Units

- 75% Cash Out, No Seasoning Required, 1-4 Units

- Close in an LLC

- Interest Only, ARM, and Fixed Rate Options Available

- I can compare 50+ lenders side by side to get you the best overall loan

Sincerely,

Debra Denimarck

Mortgage Loan Originator

NMLS ID #1519547

631-320-8699 (call/text)

631-687-3510 ext 121 (office)

"Integrity is the Benchmark of Excellence."

Your other option is to use a product that doesn't require you to look at your debt-to-income ratios at all. I know of products that just look at the cash flow of the property but they are designed for investments only- not PR's.

Hmmm...you could possibly borrow cash from the Airbnb but you'd have to declare that you plan on not living there as your primary residence because the product I have in mind is only for investment properties, not Primary Residences. The same product I have in mind could also be used to purchase your new property and qualify it based soley on the cash flow of the property (doens't look at your income at all), but again it'd have to be an "investment property". 

I may be able to help you with a short term, unsecured business loan. 

Hi Nic! I could help you out. I am actually located on the island, and have friends and family in upstate NY so I am pretty familiar with some parts. I also have clients currently in the Amherst & Buffalo area. Send me a message! 

Don't forget that you will most likely be required to have reserves in the bank. Personally, I'd strive to have at a minimum 6 months of reserves in the bank after all is said and done, god forbid something were to happen - tenants don't want to pay rent anymore, they lost their job, etc.