All Forum Posts by: Eric Veronica

@Christian Chevier If you are looking for a conventional cash out on a SFR you will be limited to 75% LTV. 2-4 unit allows for 70% LTV :-)

@Jimmy Lin You made the statement "two lenders has asked me to transfer title to my personal name, which is not my end objective"

If your end objective is to own in the name of an LLC then why cant you just quit claim back into the LLC after the loan is closed?

@Michael Bridgett Looks like two properties total.   Here is a link to the Freddie Mac update  https://www.allregs.com/AO/Viewform.aspx?formid=00069227&formtype=agency

@Alfred Litton That may be the case for some lenders. I personally do not require that 6 months if you were majority owner of the LLC.

@Raleigh Anthony Salazar totally get it man.  Good luck!

@Emily Wiu You are correct that you will not get anywhere calling Penny Mac directly.  My suggestion was the branch manager at your loan officer's specific office.  Now that you shed some additional light on the issue I am not sure that this will help. Still worth a shot. 

Sounds like the lender is questioning occupancy.  This is always a grey area and leaves the decision up to underwriting discretion, which is a scary concept.  I completely understand how frustrated and helpless you must feel right now.  With that being said, this specific issue is heavily scrutinized.  A couple of years ago a credit risk officer told me that occupancy fraud is the number one fraud that he sees on files so underwriters are hyper vigilant.  I also understand how you might be confused why a lender wouldn't have addressed this issue up front.  This challenge with doing this up front is that there are so many potential moving parts that make it difficult to give a concrete answer until you have every single piece of the puzzle. 

Is the distance of travel decreasing by 10 minutes? 20 minutes? 60 minutes?

While moving closer to your boyfriends employer are you also moving further away from your employer ?

Do you currently have rental properties?

Is the home you are moving into bigger? Smaller? More bedrooms? less bedrooms?

I could go on and on.  BTW I am not asking you to answer all these questions. Just trying to give you an idea of what type of things the underwriter might be questioning.  Hope you hear something positive before the weekend!

@Raleigh Anthony Salazar I hope you don’t take this the wrong way but you are definitely not in a position where you have a lot of leverage. A lot of lenders will not give you the time of day the second you tell them you score is in the 500’s. The fact that this Loan officer has taken the time and effort to help you fix your credit is really awesome. He is not making a penny for this guidance. Unless the loan officer is a hack I would highly recommend staying loyal to the person who has lent his time and energy. 

Also one other thing I wanted to comment on because a lot of buyers get this confused. If a bank or a lender or a program requires a minimum credit score above 580 then that doesn’t mean once you hit 581 it is smooth sailing. Often times that 580 score is the bare minimum for your application to even be considered.  Credit scores serve a purpose but they can also be flawed and misleading  It is not uncommon to see people with foreclosures or bankruptcies 18 months ago sporting 700 credit scores. 

I guess the point is that this loan officer has shown a commitment. This relationship could be really important as you move forward in your investing career.

Good luck!

@Edwin Martinez Awesome!  Well done !

@Tosin Oluwatoye don’t want to speak For another lenders products but you may not be getting a return rate because 80% cash out on a 2-4 investment is not allowed on a traditional conventional mortgage. 

Conventional guidelines limit to 70% LTV max cash on on 2-4 unit investment and 75% on single family investment.

@Eliseo Rodriguez Cordoba read the thread that @Chris Mason linked to in the comments. The Homepossible program that he referenced provides the solution to you PMI concern. Additionally Homepossible offers discounted PMI and also limits interest rate adjustments which can result in rates much lower than other conventional program. If you are in Cali call Chris. The guy knows his stuff.