All Forum Posts by: Jamie Jones

I have closed conventional loans for 19 year old clients in the past couple of years. Just had to prove that their current income was stable/consistent, and then used their status as high school student to fulfill the 2 year requirement (client had to get me transcripts from his senior year of high school). It's the same thing we have to do for those just starting a new job after college. The issue will be if the income is not sufficient enough to repay the loan, or is considered variable and not consistent. 

 As @Luka Milicevic mentioned, I'm not sure why everyone immediately jumped to DSCR, as that really should only come into consideration if you cant' get conventional financing. I am a mortgage banker in Nashville and also own a few rental properties, and work with a lot of self-employed borrowers. Owning your business for 20+ years makes things a lot easier, as you will only need to provide your 2022 tax returns. Please DM if you'd like to discuss further.

Hi @Joe Banks, I'm not a broker but I am a mortgage advisor located in Tennessee employed by the largest bank in Nashville and lend all over the state. You don't need a broker to do the 3% down deal - as long as you are a first-time buyer you qualify for financing up to 97%. There are pros and cons to conventional vs. FHA.

I'd be happy to discuss in more detail with you if you'd like, shoot me a message. 

It may have a small impact on your credit score, but should not be anything major. 

Hi @Dillon O., I'd love to chat about your scenario and see if I could help you get into a home. I own multiple rentals and am also a mortgage advisor. One factor to consider is how long you have owned the rentals. Assuming more than a year, most conventional lenders are going to look at the Schedule E on your personal tax returns, which shows your total gross rental income and all the expenses for that year. That is how they calculate rental income/loss. In regards to departing unit you will be moving out of, we could use 75% of a signed lease agreement to help offset any PITI payment. Hope this helps!

Sounds like you aren't talking to anyone who is actually incentivized to close loans. Talk to a mortgage professional. I have closed many loans for folks on conventional finances who have multiple properties. It really all comes down to what shows on the schedule E of your tax returns to show how much rental income underwriters can use to offset the PITI payments on your rentals. Generally they can add back insurance, taxes, mortgage interest, and depreciation from the deductions you took.

So as long as your write-offs aren't too big, and you have strong W2 income, I don't see an issue in getting conventional financing if looking for another mortgage. 

just putting your properties in an LLC won't fix this issue - you still personally guaranteed the loan. You would have to go back and refinance those loans into the LLC's name and out of your name. However, that might not even be the issue, assuming you have tenants in the property that are covering your PITI payments. What does your income look like? Lenders have to verify that you have the ability to repay the loan they give you (ATR) so they have to show that you have some form of stable income.

As others have replied, this is pretty normal. It may seem redundant, but you have to realize that these loans are packaged and sold, and can be audited at any time, so having precise documentation is key to keep lenders out of trouble. For example, the reason they want the source of the funds you used to pay off credit card is so that they can verify you actually paid it with your own money and you didn't just go get another loan to pay off that one (people try to do this often), which would increase your DTI and also to flag for any potential illegal activities.

Hi @Tom Hall, we do not have a minimum loan amount on any of our conventional mortgages and offer no pre-payment penalties. What is the LTV and location?

Hi @Demetrius Hopkins we don't have any minimum loan amounts at the bank I work for. I agree with others that there may be a better way to finance the amount you need, but if you are interested in a conventional mortgage, shoot me a message.