All Forum Posts by: Dennis Cobos

@Andrew Postell - Thank you for your reply and for noting this in case others find this discussion. I gotta say though, that the lender I have been talking to found a program for me as a first time home buyer that allows as low as 5% down and for the PMI to be canceled when the LTV ratio reaches 78%. Of course, this is NOT a conventional mortgage though.

Hi @Jeff Dulla, yes, I agree that the trade-off of paying a higher interest rate to eliminate paying PMI does not make sense in the long term, especially like you said that I would be able to cancel PMI within 3-5 years. Thank you for the insight, this is very helpful!

@Wes Blackwell - Thanks for the insight on the second option you gave, I believe I've heard something about that before but I will do some research on it to see if it's better in the long term than just paying PMI or not.

The third option of "buying out" the PMI with a higher interest rate doesn't make sense in the long term, I didn't know about this trade-off. I would be interested to hear some insight from your friend @Chris Mason!

@Jeff B. I have been working with a lender that found a program for me that allows as low as 5% down, and the PMI will be cancelled when the loan reaches 78% LTV. Of course this is not a conventional loan, but there are cases where the PMI on the loan will not be retained for the life of the loan through other programs.

Hi everyone!

I will be investing in my first property (duplex or triplex) in the next few months, hopefully around May, in Sacramento CA. I've been working with an agent already and have started to narrow down my criteria and know what price range I can afford.

For financing, I will be able to do between 10-15% max as down payment. I have heard from multiple people in podcasts who have done less than 20% down using a conventional mortgage with the perk of not being charged PMI. I don't want to be charged PMI if possible. Has anyone on here gotten a conventional loan with less than 20% down and not been charged PMI? If so, who was your lender? Otherwise, does anybody have recommendations for specific Lenders/Banks I can try who do conventional loans, allow less than 20% down payment and DON'T charge PMI?

Thanks in advanced!

Hi everyone! I will be investing in my first property (duplex or triplex) in the next few months, hopefully around May, in Sacramento CA. I've been working with an agent already and have started to narrow down my criteria and know what price range I can afford. For financing, I will be able to do between 10-15% max as down payment. I have heard from multiple people in podcasts who have done less than 20% down using a conventional mortgage with the perk of not being charged PMI. I don't want to be charged PMI if possible. Has anyone on here gotten a conventional loan with less than 20% down and not been charged PMI? If so, who was your lender? Otherwise, does anybody have recommendations for specific Lenders/Banks I can try who do conventional loans, allow less than 20% down payment and DON'T charge PMI? Thanks in advanced!

Hi everyone! I will be investing in my first property (duplex or triplex) in the next few months, hopefully around May, in Sacramento CA. I've been working with an agent already and have started to narrow down my criteria and know what price range I can afford. For financing, I will be able to do between 10-15% max as down payment. I have heard from multiple people in podcasts who have done less than 20% down using a conventional mortgage with the perk of not being charged PMI. I don't want to be charged PMI if possible. Has anyone on here gotten a conventional loan with less than 20% down and not been charged PMI? If so, who was your lender? Otherwise, does anybody have recommendations for specific Lenders/Banks I can try who do conventional loans, allow less than 20% down payment and DON'T charge PMI? Thanks in advanced!

@Chris Mason - thank you for that information! After reading yours and Naseer's feedback and doing some more investigation about LLC's, it seems that wouldn't be the best option for us at the moment, since we would just be buying our first property and don't have many assets to need an LLC.

@Carrianne Mucho - We are open to most areas in Sacramento, we would prefer the areas of East Sacramento, Arden-Arcade, and Tahoe Park, and we are only interested in multifamily properties from duplexes to quads. We would be relocating to Sacramento from the SF Bay Area, our plan is to 'house hack' by living in one of the units and renting out the rest. I went to Sacramento State so I am very familiar with the area and fell in love with Sacramento while I was there! Would you be able to help us with finding a lender that does FHA loans? or conventional loans that allow less than 20% down? Thank you for replying to my post!

@Naseer Khan

Thank you for your feedback! Yes, this is the person I want to do business with.

As for your feedback:

1 & 2) I will take you up on your offer and contact you for guidance in this. 

3) After gotten some feedback on LLC's and reading up a little more on them, it seems that at this moment we wouldn't need to do this since we would be buying our first property. After a good number of properties is when this would make sense. Would this depend on how much worth in assets we would have? For example, once we reach $1M in assets is when it would be a good idea to form an LLC?

4) A partnership agreement would be drafter by a real estate lawyer, correct?