All Forum Posts by: Diana Muresan

@Mosh Kor that’s a lot of capital actually. If you have 2 years employment then you can walk the red carpet of conventional FannieMae HomeStyle renovation loans, only 15% downpayment, yiu can flip as many as you like 

@Gary Quackenbush what do you mean to flip it? Sorry, I don’t understand. 

@Neal Ward best product out there for investment flipping is FannieMae HomeStyle, only 15% downpayment, you don’t need to make mortgage payments during the renovation and you can refi or sell after the reno, there are no pre-pay penalities on conventional market 

@Nick Causa you can do 80% refi cash out for owner occupied. DSC concept doesn't exist on conventional market, only on non-agency and subprime. So if this is an investment then you either take the lower Ltv but low rate and closing costs on conventional or you get a higher LTV but higher rate and closing costs on subprime. It really comes down to what that 5% equity means to you

@James H. I am 203k Fha and Fannie Mae HomeStyle certified. First of all, GC receives 50% of material costs at closing and 3-4 draws after, secondly, you don’t need to make mortgage payments during renovation up to 6 months if property is inhabitable and thirdly you have about 9 months to finish the renovation. Yes, GCs at always the weekest link in a reno loan, reason why I never get involved to recommend one.  How did you find yours in the first place?

@Tyler Lance there are also renovation loans, 203k FHA for owner occupied and FannieMae for both conventional and investment

@Krystal Stone I don’t understand why the income would not be accepted, is the debt to income ratio too high? What distributions are you referring to? If self employment is less than 5 years we need to average 2 years, have you filed 2018 already? If not; you still have time to have a banker structure your file. Fannie Mae HomeStryle renovation loans required only 15% downpayment and it includes the renovation costs, plus the rental income is used for qualification, your current income only needs to cover your current expenses 

@Amanda Aesho I have a renovation team in Naperville, I approved 3 GCs and I have a realtor in the team; they are targeting the $300k homes that needs about $100k in repairs, buyer takes the renovation loan, this is just one example... you can make money in any area, we all have different strategies 

@Gannon Nikolich I am VA certified, please ignore some advices above to keep the loan hoping the lender will not notice, this is not a lender issue, you are messing with the Office of the VA Affairs and you do NOT want that. Only the spouse of a deceased VA can assume the loan. Your case is easy, you can refinance rate & term, you cannot refi cash-out when you transfer a title, only current debt can be paid, if you need cash out then you will need to do a purchase transaction, though closing costs will be much lower on a refinance than a purchase. How long have been working as a W2 employee? You can have less than 1 year as W2 if your income is not commission, W2 income is more stable than self employment, if it was the other way around where you switched from W2 to self employment, then you would need to show 2 years, but not in your case.

@Nayari Scott if you are just  looking for quotes, you can just send your income -and assets docs along with a credit report (hard inquire)

When you decide the banker and ready for a pre-approval, they will pull credit which is valid for 4 months. 

If it helps, current rates for owner occupied fha is 4.25% and conventional Freddie with 5% down is 4.25-4.375%, no origination or discounts. Make sure you do your due diligence, the only pitfalls with shoppers that i see is that they get trapped and once under contract and time to lock the rate, they get a much higher rate and will be too late to pull out.