All Forum Posts by: Diana Muresan

I currently have a 203k Fha reconversion from a SFR to a triplex, buyer is a firefighter, I could forward you the GC we have on file. Problem is I don't know how good he is as he will do the Reno work after the closing.

@Blake Charles garrick you just need to raise your credit score to 600, though technically fHa mo longer require a min credit score, I have an FHA file now with 595, banks use an automatic underwriting system so you might get approved below 600 if you have reserves.

Not sure what’s on your  credit, if there are maxed out accts, most bankers will do a complimentary rapid rescore but if there are more serious issues you should get enrolled in a credit repair program for couple of months, just make sure is not one you find yourself but the one lender will recommend as internally there at every few that are approved by banks and they guarantee results as they are accountable and they need to provide a forecast on the credit score. 

@Chris Turek loan limit for 2 units in Hudson County is $870K so you will have a jumbo loan, investment property and a cash out pending on how much money need to pull out. You monthly payment will go up quite a bit. You need to put down the numbers and see if it makes sense to keep it. No one would really do the due diligence for you as we all have different business strategies. I would personally. I would personally sell it instead of pulling out cash 

@Jacob George Lada Please PM me

@Jacob George Lada only one can be OO (owner occupied) with 3.5% or 5% down pending on the program, the rest are investment, which is 25% down, you might be able just to get 2 buildings for now

@Jacob George Lada You can still do an owner occupied even if there are tenants, sellers agent just needs to provide a month to month lease since you need to show a units would be vacant within 60 days after closing. Not sure you can qualify as owner occupied based on your current home situation or what is the commute from work if you are W2

@Trush A.Got it. I would still do the Fannie reno loan as appraisal value is not an issue since is subject to repairs. And yes, many buyers will do the loan under their name and move to S Corp or LLC after closing, not sure on the fee, it cant be much

Banks use your departure residence rental income declared on Sch E of your tax returns, so the 2 units will come from the Sch E and the unit you move out, banks use 75% of the lease. Make sure you don't deduct too much on your taxes as you might end up with a negative income which will hurt your DTI (debt to income ratio). Ideally is to have a plan how to get rid of the MI (mortgage ins) you have on the triplex, that will chew up your profit. Ideally is to refi before you move out, but you will not be able to accrue equity in just a year, the only way to accelerate equity and refi much faster is to do a 203k FHA reno on a MF (multi family), you can refi or sell after at your choice. You are not obligated to reside in your FHA financed MF, there is no authority that will make you do that. Only VA loans might have someone from the VA office know at your door, but not for the rest of the loans. The only thing that needs to be considered is if you purchase within 12 months, you cannot do another OO (owner occupied

@Michael Norris on conventional market you need 2 years of employment in the same line of work, you can have 10 employers, it doesn't matter as long as you have 2 years continuous history, we exclude the work gaps. Are you W2 or self employed? Yes, I see lots of investors rushing to get properties thinking the can do a BRRR without making sure they have a pre-approval ahead of time.

The bank statements program is only of self employed not for W2, you can perhaps do a DSC (debt service coverage) but rates are higher, not ideal for long term 

@Blake Charles garrick I would walk the red carpet of conventional lending, you can do Fannie renovation loan on 1 unit with 15% down including your renovation costs, you can refi or sell after renovation is done