All Forum Posts by: Erik Estrada

Hey @Victoria Velazquez would love to take a look at your situation. I am located in Los Angeles. 

@David B. You can also negotiate the price, considering there are generally less qualified buyers on the market. Also because of this, you won't have to worry about dropping your appraisal contingency. Another alternative is buying down the rate, if you are looking to maximize your longterm cash flow, but it can be costly. If it is a short term hold, you could consider an ARM loan or an interest only. Lastly there are also 40 yr fixed rate programs available which can offer a lower monthly payment, but more spent interest over time.

It could be a great time to finally find some deals. With all this fear going on, we are seeing sellers reduce their price and less qualified buyers. You can do an ARM but it will be generally more expensive in terms of closing costs. Nonetheless it could be a great alternative if you are looking for a short term hold.

If you wan't to occupy the property and have a low down payment, go with a conventional loan. Most lenders want 15% down for a DSCR loan. This program is for non-owner occupied 1-4 unit properties and qualifies you based on cashflow, credit, and history of ownership.

Smart move buying a duplex first instead of a SFR. @Kushaal is correct in that they will only add 75% of the rental income to your monthly income. Depending also on your credit score, we can see whether going FHA or Conventional would be a better route for you.

I would suggest looking into the bank statement loan. Lenders consider the deposits (about 12 months) to your bank account and use that as qualifying income. Rates are generally higher on these programs. 

It depends on how long you would like to hold onto the property and if the expense to acquire the AIO loan makes sense compared to acquiring a conventional loan. Also if it has a balloon payment at the end. Would love to take a look at your scenario. 

The underwriter would see this on the appraisal and would have an issue lending on this. I went through the same issue. My best advice is to talk to the person in charge of zoning and codes in your city and ask if they can issue you a letter giving you an "okay" that it can be rebuilt as a 3-unit. Let me know if you have anymore questions!

DSCR Loans can finance up to 85% if you do not plan on living in it.

 There is also a 3-month bank statement loan program available. Most of them are 12 months or more. This one could work depending on your scenario.