All Forum Posts by: Eric Hobbs

Tides Eye Real Estate Imagery.  Owner is well known in the Myrtle Beach area.  

@Jill Rubin

Are there other factors in which you were turned down besides credit score?  A conventional lender will look at 3 things:  Income, Assets and Credit.  So, if you have a low credit score, but you have other compensating factors (such as good income) it's possible to obtain financing.  However, would need all the pieces to the puzzle to know what else is going on.  If traditional financing doesn't work, you can look into Non-QM lending.  

@Vicky Manthos

Regarding your question about previous property ownership: If you're a new investor you would be required to own a primary residence and be on time with payments for 1 full year. The requirements are a little more strict for new investors. There may be lenders that don't have this requirement, but I know from my experience being in the mortgage space all my lenders require a new investor (without prior Investing experience) to own a primary residence to obtain a DSCR loan. A DSCR loan is also called Investor Cash Flow Loan. This mortgage falls under the Non-Qm mortgage product, which essentially just means it's outside of Conventional financing. There are a gazillion lenders so you may be able to find a lender that doesn't have this requirement, but may be very difficult.

@Ryan Brooks

Very welcome!  Hope you're happy with your purchase.

@Ryan Brooks

Again, these investment properties loans (Fannie Mae loans) DO NOT come with 0 points anymore.  See my other post.

@Ryan Brooks

Mortgage Broker here. Points on traditional investment property financing i.e. Fannie Mae/Freddie Mac loans now have an imposed fee (pricing) which makes these loans a lot more expensive. So, in short yes these types of loans do not come with 0 points anymore. Effective in April 2022, but it was priced into the market a little before. A primary residence loan does not have this as standard.

@Brian Garrett

One option is doing a DSCR loan - Debt Service Coverage Ratio loan also known as Investor Cash Flow loan. You're qualified on the rental income vs mortgage payment (+ HOA if applicable). The appraiser will do a rent schedule. These can be for short term rentals or long term rental. 20%-25% down payment depending on credit score. No income documents required.

Hi Mallory!  What areas are you looking into?  I'm about 40 minutes from Myrtle Beach, SC.  

Congratulations!!  Well worth your time, effort and investment!  I am in the initial process of going through my first Real Estate Investing deal.  It would be a fix/flip renovation, but not exactly sure how much work is needed.  I just had a home inspection done, which has raised a lot of questions.  It's a fine line with getting specialists out there to quote how much since going out there to inspect will not be free.  Home Inspection recommended I get a structural engineer, Licensed Electrician and HVAC & Plumber.  

Are you looking in Charleston or Myrtle Beach?  They are different markets and different price points.