All Forum Posts by: Eric Veronica

If you do a cash out refinance you will likely incur a few thousand dollars in closing costs with the possibility of a lower/higher rate.  If you are selling stocks then it is very likely that you will incur some amount of short or long term capital gain tax.  

This is really an impossible question to answer without accurate. Two different people asking the same exact question could have opposite answers. What is your current mortgage rate vs new rate?  What are the closing costs? What tax bracket are you in?  How much have the stocks appreciated since you purchased?  Will you pay short term or long term cap gains tax. 

Your tax preparer/accountant is probably the best person for this type of question.

Good Luck! 

@Mel Adams Correct on the rental history. The other requirement is having a current housing expense. So you cant live with mom and dad or live rent free and then count rental income in excess of offsetting the new PITI.

Short answer.... No

You took out that debt in only your name so you bear the sole responsibility.  If one day your fiance decides to stop contributing to the monthly payment you are still responsible for the full monthly payment.  Even if you were co-borrowers on the current primary mortgage you would have to qualify with the entire payment if you were applying for a new loan solely in your name. 

Per Fannie Mae guidelines you are allowed to use proposed rental income to offset the the PITI payment of the new mortgage. There are some different rules about how much of that rent you can use. If you are purchasing in a lower cost market like Ohio/Mich/Indiana the proposed rental income usually offsets the entire new payment.

I will warn you a LOT Of lenders have overlays or additional rules surrounding this topic so be sure to ask the specific lender where they stand on this topic.  

@Chris Mason is correct. The cap is based on financed properties.  Not Fannie financed properties. Private loans count as one of your financed properties.  Even if you have one private money blanket loan covering 10 different properties then technically you are at the limit. 

Now if your 10 properties are owned in the name of an LLC and the private loans are made to the name of the LLC that may open you back up to a Fannie loan.

Might want to consider finding a senior loan officer and work under that person as a junior loan officer.  This route will help you learn the ropes with a little less pressure.  The toughest and most important part is finding the right person.  Sometimes the most successful loan officers are very hard to pick out of a lineup.  

Be prepared.... the first 5 years is really tough.  You will likely make a lot of mistakes and many days it will be tough to open the laptop.  Having someone who can help you avoid a lot of those mistakes will make those first few years a lot easier.  

If you are the borrower then yes, the payment will impact your debt to income ratio. 

Get it!

Cant imagine why this would be an issue unless your state has an odd rule forbidding this practice.  

@Ryan Newport Homepossible program is still available for 2-4 units however they increased the maximum LTV on 2-4 units.

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