All Forum Posts by: Diana Muresan

@Cole Farrell you could start with a 2-4 units either FHA with 3.5% downpayment or Freddie with 5% down and build your closing costs as seller concession

@Barry B. I do new construction but only on owner occupied. 95% on conforming and 80% on jumbo 

@Lee Castro people purchase owner occupied properties all the time and they end up renting them, some after a year some from the beginning. Of course that's not what a lender wants to hear... reason why a lender will not close on 2 owner occupied purchases within 12 mo for same buyer, but you can close with other lender as long as the first purchase is not FHA.

@Horacio Gutierrez I don't understand the question, could you please clarify. You don't need landlord experience on conventional market. If you are purchasing then lender will use the net rent income from the appraisal addendum, if you are referring to existing rent on a property you own already own, then lenders use 1 y of Sch E tax returns if the property was purchased in the previous tax season, otherwise lenders will use the lease. Only on VA loans, when you purchase a MF, you cannot use the rental income to qualify with unless you have landlord experience

@Mike Rutherford Fannie does delayed financing within the first 6 months of the purchase at 75% LTV of the purchase price, the good part is that you get the same rate as a purchase and not a refi cash out which would be higher. If you need to to cash out based on the new appraised value then you will need to wait for the 6 months seasoning. That's your best option as rate on conventional will Be much lower as well as lower closing costs compared to subprime market. So obviously if you plan on holding this property for few years, it makes sense to wait the 6 month rather then getting a high rate on subprime

@Jim D. that's not correct. Conventional doesn't have lower MI than FHA, FHA has a standard 0.8 on downpayment and MI is dropped after 11 years, and 0.85% on 3.5% downpayment and MI is for the life of the loan. MI on Conventional loans is structured on credit score, downpayment and type of program and property. Also on MF, MI is not dropped at 78%, that's only for SFR

@Jeremy Mattson you can refinance the FHA loan anytime, you don't need to stay there 12 month. You cannot purchase another OO (owner occupied) within 12 months with your credit union but you can buy with other lender. These are internal overlays that you cannot do 2 OO purchases within 12 months. If you refinance conventional OO at 75% cash out and then purchase your next MF as owner occupied with other lender. Just make sure sure that the refi and the purchase are with 2 different lenders and one is Fannie and the other is Freddie since Fannie will disclose in their AUS ( automated underwriting system) if you bought an owner occupied properties within the last 12 months

@Curran D Bishop you have 2 options, you can do an FHA and since the other SFR are out of state, you will be able to use the rental income for qualifying purposes, otherwise FHA doesn't allow use of rental income on properties you own within 100 miles radius. Option 2 is FreddieMac HomePossible with 5% as long as your Total monthly income is below your county median, keep in mind that the net rental income is added as well. You could also exclude the rental income to keep income down as long as your income will cover all mortgage and keep your DTI (debt to income ratio) under 45%. Difference between FHA and Freddie Is that you don't need to refi on Freddie in order to cancel the MI unlike then FHA, so yes, first you try the freddie. Here is the link for Freddie income limit look up, if the property Is located in a low census area, then there is no income restriction

http://www.freddiemac.com/homepossible/eligibility.html

@Brian G. what is the value and what is the current balance and how much is the cash out? What is your middle credit score?

@Jane Sosi 2/3 of my borrowers are self employed, they buy more real estate than my W2 borrowers. Anyway, back to your scenario, if you purchase an investment property your income is not as relevant, it only needs to cover your current expenses, we use the net rent on your purchase and we added to your monthly income. Btw, if you are self employed for at least 5 years, only 1 y of tax returns is required. Ah, also, line 30 from Sch C, which is Use of Home as business is actually added to your income, hope that helps

@Christine G. are you purchasing journals next property as owner occupied or investment? If you purchase as investment and you need to cash out in order to get the funds for down payment, I suggest a regular refi and not a heloc, rate will be similar with the purchase and definitely better terms than a heloc, also Heloc are riskier, they are not governed by the Fannie and Freddie, you are not as protected, also as this year, you can no longer deduct heloc interest on your taxes.