All Forum Posts by: Derek Hammond

@James Zettelmeyer! my man! This was so helpful! I've been considering reaching out to a wholesaler/broker, but I think you may have sold me. At the very least, I now have a fairly good idea on what to expect and what terminology to use when having conversations with potential lenders. Thank you so much for taking the time, dude! 

ps. i'm a forum nerd, but BP is like nothing I've seen before when it comes to honest and genuine information being shared. Thank you to everyone for being so willing to spend their time replying to this thread. Can't thank you all enough! 

thanks @Ed Burk! This was super detailed and very interesting. I'd be curious of rates of private lenders vs commercial lenders. I really appreciate you taking the time to respond in such depth. I may reach out in the future. Thanks so much, dude! 

@Matt Shields Solid advice, man. I like your style. And I know exactly what you mean regarding the 'gurus' and their tricks. It's a racket for sure. I like the advice of getting in touch with an agent. I hadn't really considered them an asset until you put it in that perspective. Finding a lender/getting pre-qual are next steps.  I've gotten a ton of good info from a lot of folks here, so I hope to put that knowledge to work in the coming weeks. Thanks again for taking the time! 

@Matt Pritchard sounds good! I plan to start fairly soon, so I'll shoot you a message when I've gotten the ball rolling! I really appreciate it. Thanks, man!

Exactly the sort of advice I'm looking for, @Matt Shields! Thank you so much for taking the time. I really appreciate it. 

And I'm glad you specified. I was thinking 'mortgage' broker. I do not have an agent yet, so I'll start checking around. Any tips on finding a qualified agent/broker for someone fairly new to the game? 

If anyone can recommend someone in the KC area, please send me their info! 

@Matt Pritchard I gotcha, no worries!  But I'm definitely looking for a creative lender. It couldn't hurt to have a convo with them. Shoot me a p/m or email with their info if you get a chance. I'll let you know if I have any luck! Appreciate all the help, man!

@Matt Shields thanks for the input, man. This helped me out. I know you can't help but be biased, but in your opinion, would a broker be a good option for me? Is a lowly citizen simply so disconnected to the point that they're unable to find the lenders that would consider a situation like the one above?  

Thanks, @Matt Pritchard! I appreciate it. 

Out of curiosity, have you or has anyone here had experience with lenders that allow the rental income to be considered income? I've seen the 75% rule vouched for here a lot, but the local lenders that I have spoken with tell me that the rule exists, but that most lenders require 1yr of rental income history for it to be considered. I'm assuming these are the overlays that others have talked about. 

I've only talked to local credit unions and banks. Am I looking for financing in the wrong place? 

Where do you find lenders that like to play it a little fast and loose?

@Stephanie P., thank you for the clear response. This helped during my conversations with the few lenders I've spoken to. In regard to the above, do you have any tips or pointers in locating a good lender for my situation. Is paying a broker a good idea? 

First time home buyer, around $7-10K as down payment. I personally can "afford" houses in the $130K range, but I'm shooting/wanting properties that are closer to $250K that have tenants in place that cover the rent twofold even after I move in. <-- How do I pull this off?

Thanks for the replies, everyone. This helps a ton! 

I am looking to acquire my first property. My personal finances look to qualify me for around $125k. I have about $7k to work with for a down payment. I live in Kansas City, MO and am looking to buy in the area as I would be occupying the property. 

My question is if there are tenants in place in say a four unit, will the loan officer take the rental income into consideration when deciding how much I qualify for? What about potential rental income? Maybe there's a four unit with 2 tenants in place, could I qualify for more than $125k? I'm seeing a few properties in my area that are just out of my price range personally, but when considering the rental income, the math works out. Could I qualify for closer to $200K with the rental income included? 

I've only started working with my local bank and credit unions. Would a portfolio lender be a better option? 

Any advice is appreciated.