All Forum Posts by: Erenik Meka

my girlfriend is a mortgage banker who handles mostly cash-out/refis and she has some info for you..

-if your primary is valued at $800k, you are capped at 70% LTV meaning the max loan amount you could borrow would be $560,000, regardless of your DTI, for a conventional loan (anything over $417k is JUMBO and therefore has that 70% cap as a guideline)

-rates 3.250%-4.375% estimated for 750 MIDDLE credit score

-true DTI is nearly impossible to calculate on your own. The banker needs to pull your credit, obtain property tax, HOI, rent and HOA information for all properties you own as well as obtain pay stubs, W2s and tax returns for full 2 years. Any self-employment income or rental income must be received for 2 full years in order to be considered AND must be reported on taxes. Capital gains cannot be used.

-don't deduct anything. Any loss claimed in tax returns is averaged over 2 years. $35k is a lot to pay in taxes but it's always better from a banking standpoint to claim as much income as you can 

-FHA allows for 85% LTV and max DTI of 52% (bottom ratio). Only drawback: FHA has county specific loan limits which could rule out that program all-together depending on where you live.

-3%-4% rates for FHA if desired loan amount is avaialbe in your county

-you're capped at 75% LTV on non-owner occupied residences regardless of DTI

-liquid assets are VERY important when you have investment properties (401k, IRA, other vested retirement funds or checking/savings)

-any reasonable and honest banker will never tell you that you are pre-qualified until they check your credit and get the information I mentioned above. They don't want to "confirm" your calculations or tell you some of what I mentioned because more often than not, they know there is a lot more that goes into those DTI calculations than what you'd expect

the more i run the numbers based on the suggested labor costs per task above and from other sources I'm not coming anywhere close to $6k. What first seemed like a relatively high quote is starting to look increasingly more steep based on my calculations 

thank you Jason, you've been very helpful so far. I'll start using forums more often this saved me a lot of extra time 

yes it is taped and needs second + final coat of compound. Trim & doors just need painting

the rates for a cash-out/refi on investment properties are typically higher (ballpark 4-5.250%) but since you're already pretty much within that range you wouldn't be taking much of a hit with a higher rate than what you are currently at. and LTV is also capped at 75%. Some banks also limit the amount of financed properties (almost sure a borrower can't have more than 10) in order to qualify for the cash-out/refi on a non-owner occupied residence.

How much do you think the property would appraise for? What is the current principle balance on your mortgage? And how much are you looking to borrow? Also, how's your credit? 

apply joint compound and sand

also forgot to add/answer this question but all materials will be provided so this quote is just for labor

I was quoted $6k on the 1290 sq/ft townhouse. Basement and first floor needs spacle finished, primer, paint, trim & doors. 2nd floor needs primer & paint.

I'll still get other quotes but how does that price sound? High, low or about right given the info provided?

thank you, so far this has all been helpful. And yes I am the general contractor doing the rest of the work on the house. I want to hire someone to do the painting as it will help me get the whole job done quicker

thanks. How should I handle payment and should I include this in my estimate for the homeowner?