All Forum Posts by: Jamie Jones

@Grace Maxwell really nailed the issue you are facing in regards to the stipend income. In general, travel nurses have a hard time passing the income rules handed down by Fannie/Freddie unless they have 2+ years of documented experience - which is frustrating because the income is great and it is a very needed and noble profession. Part of the issue the agencies (Fannie & Freddie) often have with travel nurse income is that they typically can't prove that the income is likely to continue for the next 3 years, which is a key ingredient they look at for qualifying income. When they can't prove the 3 year continuance of income, or have documentation stating it will end sooner (such as an employment contract) then they want to see a stable history of the borrower earning this type of income in the same industry. 

Another issue that sometimes comes up but can usually be explained with a letter to the underwriter is the issue of classification of occupancy as it being a primary residence, since travel nurses are, by definition, not typically in any one place too long. 

@Fallon Gilbert understood. If you are looking to get a blanket type of loan (combining the value of all 3 and getting one loan/line of credit) you may run into some minimum loan amounts/concerns about location. However, if you are just wanting to pull cash out of each one individually, you should be able to get a conventional loan (assuming you can show stable income). I have plenty of clients who live in a different state than where their rentals are located. 

@Tareq Alafranji if you are looking for a conventional loan, we have no minimum loan amount. Feel free to reach out if you want any more info. 

@Fallon Gilbert what are you needing a lender for? Are you looking to pull cash out of the equity you have in these properties? Are all 3 of these rentals or is one a primary residence? 

As @Jay Hurst mentioned, a 2-4 unit property is going to add an additional adjustment of .625. This is typically paid by the interest rate increasing by approx. .25%, but could also be paid in the form of upfront discount points to keep your rate the same. Either way, it's a small price to pay to get that monthly rent to help offset the PITI payment!

Both of those are great deals! I think I would personally opt for getting the highest credit limit possible. A 1% increase in rate only adds roughly $40/mo. for every $50,000 borrowed. 

Hi @Silas Lowenthal, great decision to get started in real estate, especially at a young age. If you can show that your income is stable, consistent, and likely to continue, I recommend talking to a lender about taking advantage of a first-time home buyer program to get you into your first home. I recommend starting the process solo, and not including your friends - as that may make things more complicated than they need to be. The bank I work for has many down payment assistance programs available that can help cover a majority of down payment/closing costs. 

Hi @Bennett Dickerson are you working while in school? If you can qualify, one way to get started in real estate would be to buy a house to live in while in school. If you are still residing in Tennessee, you could look at a THDA loan that would help with down payment assistance (either $6k with no re-payment or 6% of the sales price with repayment). Then, you could get a couple roommates to cover your housing expense while in school, and rent out it out long term after you graduate. By the time you're done with school, you will have started building wealth and have a rental property in a college town under your belt. 

@Bret Ostendorf Not sure if you have made a decision on this yet, but one thing to consider is that cash-out refinances have higher interest rates than purchase loans. So it may make more sense to just get a traditional purchase loan on your new home and leave your departing residence free & clear. 

2 other considerations that may make it beneficial to get the cash-out: 1) you need the cash from the refi in order to have enough funds for the down payment on the new house 2) you can pull enough cash out of your existing home (80% of $450k so $360k) to pay cash for the new home, which will help you stand out as a buyer. 

 Having 10 properties could actually discourage them to write the loan (assuming the property you are trying to refinance is an investment property). 10 is the max number of financed properties that Fannie Mae allows.