All Forum Posts by: Eric Veronica

@Devin Chong You mentioned the interest rates but did not mention if that rate quote was a par rate or if the lender was charging points. For comparison purposes I always tell customers to make sure they are requesting the 0 point rate.  That way you can be sure you are comparing apples to apples.  

@Weng L.  The key word here is "SECURED".  A secured line of credit (home equity line of credit) can be used as qualifying down payment as long as the line of credit is in your name.  An unsecured line of credit (credit card) cannot be used as a down payment.  

This answer assumes that you are looking for conventional financing. 

@Brooke Reeves This is a very interesting question.  Up front the applying online process can seem easier and cleaner however it can miss some very important issues that a face to face or a phone call may uncover.  If you are a salaried employee, with good credit, and good equity who is looking to refinance a primary residence then an online application is fine.  On the flip side If you are self employed, a commissioned employee, credit challenged, a property investor, etc you can still complete the online application but I would highly recommend speaking to the loan officer to clarify anything that you think might need further explanation.  

A hybrid process is probably best in my opinion. 

@Kelly M. Conventional residential cash out guidelines allow for 75% on a single family and 70% on a 2-4 unit. 

On a side note you may have some challenges getting conventional residential financing for a mixed used property.

@Courtney Cleveland You have a non-warrantable condo.  Each of these reasons on their own are reason for denial.  You will need to find a lender who will lend on a non-warrantable investment condo.  Likely that rates will be higher than a conventional loan. 

@Phil Baker If you own a majority percentage of the LLC then you could obtain a conventional mortgage if you are willing to quit claim deed into your personal name prior to closing. Often times investors will quit claim deed the property back to LLC after closing.

@Mel Berg  some lenders may have slightly different rules but for the most part you should be able to qualify with the new income immediately. Some lenders may require that the new job is a similar line of work when compared with your prior self employment.  

The answer would be different if your new job was part-time instead of full-time. 

@Ladd Krestan yes a primary occupancy gives you some added flexibility. There are quite a few Ohio banks that offer HELOCs up to 90% LTV. You may even be able to find higher.

@Ladd Krestan You may have a difficult time obtaining a HELOC agove 75% on an investment property.

@Joseph Mattucci Using percentages is never a great way to estimate closing costs.  There are some variable costs that will change with the loan amount size however most of the fees are fixed.  The cost of appraising, underwriting, closing, and recording are going to be about the same whether you are buying a home for $80,000 or $300,000

Here is a rough estimate for a recent investment property I closed in Cleveland with a $250,000 purchase price and a $200,000 loan amount