All Forum Posts by: Diana Muresan

@Joseph Bennett option 1- FHA, 3.5% downpayment, but you can't use rental income on your departure residence to qualify with as fha doesnt allow use of rental income on properties located within 100 min radius. Rate around 4.25-4.375%, you need 2 mo reserves on duplex and 3 mo reserves on 3-4 units, you can use your 401k for reserves and you can build all your closing costs with seller concession. Bad part- you will need to refinance to get rid of the MI (mortgage ins)

Option 2- conventional FreddieMac HomePossible with 5% Downpayment, you can use rental income on your departure residence and you don’t need reserves unless the AUS findings requires it. Rates around 4.375% but yiur household income needs to be below your county median unless property is in an area with no income restriction  you can build seller concession and the Good part - you don’t need to refi to cancel the MI

@David Diaz the fastest way to accelerate equity on the MF so you can refi and get rid of the MI (mortgage ins) and then buy another FHA is to do a 203k fha renovation loan on a fixer uper, yiu only need the 3.5% downpayment and you can build your closing costs with seller concession, you can refi or sell after the reno without penalty.

@Curtis Maag fire that GC please :-) since when a GC gives expert advice on lending? You can easily do a 203k Fha renovation loan with only 3.5% downpayment. For example you find a $200k MF that needs $100k repairs, your purchase price is $300k, your down payment is $10,500, yiu can build all your closing costs with seller concession. Your GC ( not the one you mentioned, a better one :-) will create a bid sheet itemizing labor and material cost for The 100k and the appraiser will forecast the value based on the the bud sheet. Repairs are done after the closing, funds are disbursed directly to your GC and you can also roll in the mortgage payments into the  loan during the reno. You can refi or sell after the renovation is done. Voila 

@Adam Martin I didn’t read all the comments so I am just bugging in here. What is the purchase price? Why would you do a balloon? Is your net worth equal to the loan amount?

@Michael Siladi FreddieMac has the best product for $1-7.5 mil, non-recourse. They require 9-12 months reserves 

@Chris Platis you can do a 203k Fha renovation loan with 3.5% downpayment on a multiunit and you can refinance or sell after the renovation. You can also build all your closing costs as seller credit as FHA allows 6% seller concession. For example you find a $300k MF and needs $100k in reno, your purchase price is $400k, you need $14k for downpayment and 2-3 months for reserves. You choose your own GC and repairs are done after closing, funds are disbursed directly to the GC in 3-4 draws. After reno if you refinance and conventional you can get rid of the MI, hoping there is enough equity or you could sell as well.

@Chris Wilburn FreddieMac HomePossible allows 95% LTV on 2-4 units. You shouldn't worry about the MI, it gets cancelled once you reach 80% LtV from the purchase price. You never want to build MI in the rate on a property you are going to hold as the MI will be temporary while the rate is there until you sell. That 4.75% rate is high which mean s it built in the MI. Rates for 2-4 units on FHA is 4.25% and on conventional 4.375%.

203k fha is also a great option as you can get a MF with 3.5% down including the renovation loan and you can refinance after the rehab is done, more likely the value will go up enough to get rid of the MI

@Bruce Archer you could do a renovation loan as a refinance, FannieMae HomeStyle allows investment properties, 85% LTV.

@Chris Shelton you can do a renovation refinance, 203k FHA if is owner occupied and FannieMae HomeStyle for investment properties

@Bryan Maitin FannieMae HomeStyle is a renovation loan for investment properties, purchase or refinance, 85% LTV