All Forum Posts by: Albert Bui

 well 70% of 455ks isnt much more than you currently owe at 283k the 70% of 455k is 318.5k and after closing items you might only net 20-30k tops (new loan minus current 283k - closing items = net proceeds in "hand.").

So The question you should be thinking about is what are my closing items and is this enough cash to accomplish my mission/goal?

Your prior question was shold I use my W2 income to pay down (aka you mean what you have saved in your checking account?).

Using your own funds to pay down your loan so you get a bigger loan sounds like a zero sum gain (aka IE using 1 dollar to pay down loan so you can net 1 more dollar from the new proposed loan) So how are you going to net more cash when spending 1 dollar to get another 1 dollar ?

@Matthew Kwan

@Carlos Valencia

This is a refinance despite what the other poster mentioned. The timeline depends on the product you use to do your refinance back out (after buying all cash with no liens). If you use conventional lending it can be 6-12 months (12 months fannie, 6 months freddie to use the current market value). If you use a DSCR rental loan it could be as low as 3-6 months of time seasoning required so it depends on what product you're using to accomplish the mission/goal.

The time frame isnt a legal requirement, its a financing product specific requirement as a guideline to obtaining the money in which you seek.

If you had other scenario related questions feel free to mention them below or via DM.

@Matthew Kwan

@Carlos Valencia

 There is no offset when you live in the 2-4 unit remember its a full HIt to your monthly PITIA and yes you can use the rental income but only as an addition to your qualifying income, you're still taking a FULL hit on the PITIA.

Its only offset when you vacate or move out or it has already been converted to a rental (pure investment/non owner property). 

@Carlos Valencia

Start with a consultation of the path forward, review your credit/income/assets, aka determine your maximum borrowing power, how do you transition from VA loan and rinse/repeat /refinance it into conventional and proceed forward to keep buying properties with 0% down VA and build a portfolio worthy of financial freedom.

Then once you've rinse and repeated enough times you reach your desired cashflow you can revisit your mortgage plan along the way at each pivot point to determine how to pivot to increase the efficiency of your plan or how to adjust the preferences (reduce risk perhaps since you're getting older, or adjusting for kid's, estate planning, divorce, etc,etc) to achieve your desired game plan.

Its basically financial planning with an emphasis on real estate cashflows, taxation of real estate, and mortgage, balancing it all to achieve short and long term cashflow goals.

@Matthew Kwan

@Carlos Valencia

Rome wasn't built in a day however having a good launch point, knowing your end in mind (7 habits of highly effective people - stephen covey), and a road map will atleast give you insight on how to proceed forward.

 Short answer is yes there are no income products and or stated income products you could utilize till you eventually start filing an acceptable form of income to qualify back for full documentation loans again (eventually). Exactly how long you have to ensure this gap of timing before you can qualify for full doc again depends on your specific situation. The fastest way back is getting a full time job or acquire rental properties/units/apt's since rental income can be used instantly (75% of gross - PITIA monthly payment = net rental Income asap/instantly).

All other forms of full doc income receipt of the income to utilize it on a loan application like alimony (needs 3-6 months of receipt + 36 months of continuation). There are some forms of income that do not require any receipt to use which are some of the above (full time job just offer letter or ownership of newly acquired rental property (lease agreement + security deposit/rent proof only).

If you dont plan to go back to full doc then stay in the no income/state world and the premium for these products varies between 1-2.5% higher than full doc fannie/freddie/FHA/VA rates but pros and cons right?

Plan accordingly and know what your gap of timing is and how or when you can utilize all your lending options again and which options you have at this moment. Thats the key, with out knowing all of this then its just a shot in the dark or having bits and pieces of info and trying to solve the financial freedom equation with out the full "picture."

We're doing these mortgage planning meetings on a daily basis.

@Matthew Kwan

@Carlos Valencia

Sure there are people who have done it but like Joe mentioned above is why your rate on HELOC is probably higher than your first mortgage so you'd only do it if your balance is really low and near the end of your term anyway so you're just getting it paid off quicker (like the last 1-3 years of payments left) becaues you want to get ride of the monthly payment and improve your cashflow now versus later.

Quote from @Michael Hites:

Quote from @Account Closed:

Hi everyone, seems like the All-In-One is a well discussed loan product and for good reason! For the right borrower it can have amazing results, here is an example of a simulator and loan scenario we recently closed for a borrower.  Now not every result will be the same, but if you are interest in a personalized scenario from a CMG lender reach out...

 Doesn't explain anything! This is what the person basically said to me when they tried to explain it! No substance!!! Walked away dumber than i was before the explanation! If you are from CMG, DO BETTER!

 It just shows total principal paid in 9.8 years and total interest paid during the assumption. The problem is there is no income assumption you're making each month and how much of your money you're saving towards paying down your loan (inside your offset account with AIO CMG loan) since the disposable funds after your living expenses are transferred over to reduce principal balance each night at 12:00AM. The more disposable funds you have each day/week/month you have a quicker balance payoff and less total interest will be paid.

This is the concept atleast but yes the above should have the built in assumptions and if they didnt give it to you then it might be a bit misleading.

90% LTV product cash out is for primary residence and has no monthly MI pricing is about 1-1.375% higher than conventional going pricing so there is a slight premium for it but it is 30 year fixed and available for those who need the money compared to other options available.

You can always transfer to LLC later on once you've seasoned your payment history on the loan for 6+ months to be safe.

@Matthew Kwan

@Carlos Valencia

You can actually have another FHA loan at the same time and as @Matthew Kwan mentioned there are exceptions you need to meet to do so. If you'd like to get rid of these onerous rules to meet you can refinance out of your current FHA loan first yes.

The other consideration is that if you move out of your primary to purchase a new FHA property you may also be subject to the 25% Equity requirement on the property you're vacating or leaving + the 100 mile rule that FHA has in place to stop rapid acquisitions. The intent of FHA was to promote primary residence home ownership not investing portfolio building so they put this rule into place.

100 Mile rule basically says that you cannot use rental income offset from a lease agreement on your current house to help you qualify for the next property when using FHA loan to qualify.

How do you get around this? YOu can use conventional financing or non VA financing options.

The 25% equity requirement typically comes up when you're vacating a primary residence to buy another primary using FHA purchase. Its documented by a second appraisal ordered on the property you're leaving or vacating to document value and your current equity in this property. Its to make sure you have enough skin in the game on this property such that when you buy the next one you're not going to be in over your ski's.

Hope that helps, there are many ways to structure your situation so that you can bob and weave around these obstacles.

@Matthew Kwan

@Carlos Valencia

 Yes Lisa you can refinance out depending on what your situation is:

- Full Doc conventional loans will require Income, assets/value of the property, and credit to qualify to refinance out

- DSCR loans only require market rental income and credit + enough assets for monthly payment reserves 3-6 months (no personal income or other liabilities are factored in, just the property in question)

- Refinancing into another private loan - this is only a bandaid temporarily to provide aide but will not be a permanent solution since most private loans term up or are due in 6-12 months after funding 

@Matthew Kwan

@Carlos Valencia