All Forum Posts by: Jarod Dudley

@Gilbert Lugo sorry to hear that. Many lenders will transfer the existing appraisal if its recent.

Good luck!

@Kevin Wilson I live in Los Angeles- and I can relate to this big time.

There are a lot of like minded investors who would be happy to partner on deals.

30% of US mortgage loans in 2018 were originated in California, you have an advantage just by living here!

If you can work with people who bring capital plus experience I think so cal is a great market, even if you’re on a budget.

@Matt Luzik you may want to compare pricing on a cash out refinance vs a heloc.

Rates are really low now on 30 year mortgage- so you may be able to lower the rate on your existing mortgage, plus access your equity, and you have the option to use a fixed rate on a mortgage. HELOCS are adjustable rate, and they won’t do anything to change the rate on your existing loan.

Residential cash out refis can go up to 80% LTV conventional or 85% FHA, and most helocs above those LTV guidelines are more expensive since it's a riskier loan with secondary lien position.

@Gilbert Lugo why did you have to order another appraisal? If you had one from 6/19 most lenders will transfer appraisals if it's from a major AMC dated within 60 days.

Since another appraisal was ordered though, you can try to challenge the appraisal.

Pull comps that have sold recently in the area, that justify the value.

Also if you can show evidence of improvements with receipts, they may award extra value for those things that they may have overlooked.

In my experience it’s usually tough to get the appraiser to go much higher, so good luck!

@Philip Johnson hey Philip-

Debt to income ratio is what lenders use to determine wether or not you’re capable of repaying a loan.

An example of a 48% DTI would be if you had 10,000 in monthly income, and all of your existing monthly debt plus the new loan your applying for totals $4,800 per month. $10,000/$4,800=48%

to make it more confusing there is also front end DTI and back end DTI- front end dti includes only your housing expenses while back end includes all lines of credit, housing, car payments etc. many lenders can get up to a 50%-57% back end DTI on residential loans, and 35-46 front end DTI.

if your dti is too low you have 2 options, Lower your expenses, or increase your income. I would bring these questions to your loan officer who I'm sure will want to help you qualify and they can go into specifics. But in general if your DTI is too low you will want to take measures to increase the income you show, which may mean being less aggressive on your tax deductions.

Hope this is helpful, good luck!

@Ben Gabin

Hey Ben-

There are short term bridge products available that fund within 7-14 days.

These loans don’t approve or deny based on your exit strategy- they are first position liens that require 10-30% down payment and satisfactory appraisal value👍🏼👍🏼

Hi Parmjeet,

looks like an older post, but have you looked at refinancing instead of HELOC? There are lenders who will do cash out refinance for foreign nationals. I'm not sure about HELOC.

Welcome Przemek!

1-4 unit non owner occupied investment properties have a huge range of financing options, both government backed and privately financed mortgage options, and having a 3 year rental history puts you in a preferred borrowers category. 

It sounds like you have a solid financial foundation. I'm sure you're going to do very well in Orange county!

Just out of curiosity what towns are you looking at for rental investments? Many investors I'm working with locally are liking Balmville and Newburgh for multi family rentals.