All Forum Posts by: Jason Wray

Annette,

If you do not have (2) years tax returns or atleast (1) year W2 1040's. You will need to go DSCR on your 1031 exchange investment purchase. If you decide to go DCSR you can use the 1031 exchange funds to get a better rate. DSCR offers a few options you can go .85%/1.00%/1.25%+ and if you put 25% down or more you can qualify for an "Elite DSCR" program. In order to know which DSCR ratio you will qualify for the lender will use the appraisal 1007 Rent Schedule common rent.

You can also elect a 40 Year I/O Interest Only where the first 10 years is fixed Interest Only which helps the cash flow. You may also get a slightly lower rate if you choose an ARM rate 5/1 or 5/6. Be careful on how many years prepayment penalty they offer because you will want to refinance when rates drop in the next 12-24 months.

You can elect (No prepay) so you can refinance in as little as 6 months for a legitimate business purpose. (Down payment on another investment rental).

You cannot have (2) FHA loans if they are multifamily unless they are 100 miles away from each other. be careful if someone tells you "Yes" that is not the correct answer FHA only allows you to buy another FHA MF home if its 100 miles away and it must also be closer to school or work. The only way you an buy another MF multifamily is if it will be your primay home. An underwriter is not going to approve you moving out of a single family home into a 2-4 unit.

You would have to refinance your current home into a conventional loan first then buy the next as an FHA home.

Jonathan,

Your broker is not telling you all of your options. You can in fact refinance with (No wait) if you pay all cash. There is No title seasoning when you pay all cash you can take out 80% LTV of the purchase price same month. You cannot use the appraisal value you use the purchase price up to 80% LTV.

If you buy a house for $100K "All Cash" you can take out $80K same month no wait.  This is called Delayed Financing which is like a purchase/refi cash out all in one.  There are No prepayment penalties and its a great way to keep using your capital to buy more doors.  Hard money loans are horrible and only good if the property cannot pass an appraisal deemed "Subject to".

Ryan,

Feel free to hit me up I am in St.Pete but am in Tampa every other week.  I have some contacts that might help you as well so lets Network!

April,

You should just buy it as an investment if you are going to put 10% down.  You can put 15% down on a Duplex as an investment and rent out both units.  That way your cash flowing from both units rather than stuck in one unit.  My advice is if you can swing another 5% to put 15% down by it as a investment property.  Rates right now are great under portfolio programs and there are No Prepays.

If you go FHA your MIP is going to hurt the cashflow and conventional will also have your PMI higher than needed. An ADU can be financed after you buy the home since you can apply for a renovation loan and add in an ADU or carriage unit.

Dennis,

You are going to be maxed out at 75% there are a few lenders that go to 80% but the rate is not worth the extra 5% and will hurt your cash flow. You can pull out 75% cash out refinance and pay off that $65K Heloc and remove that 2nd lien position.

If it appraises for $232K at 75% that gives you $174K that allows you to pay off the mortgage and Heloc (Minus $67Kmtg & $65KHeloc) leaves you with $42,000.00

Its better to do a cash out refinance get rid of the debt burden of the Heloc and take the remaining cash to use as a down payment. When you buy another rental property you will want to be cash fluid and have reserves. A Heloc is a menace and goes against your DTI plus it "Cannot" be used as an asset or for PITI reserves.

 You are Very Welcome!

Jorge,

You have to be careful which bank/lender you choose because some banks/lenders have shorter approval periods. My advice is to get your pre-approval 45-60 days out since so that you have time to shop. Typically when a credit report is pulled the approval is good for (90 days) so you have time to shop. You also want a big enough window in case there are things you have to correct or do prior to the approval.

You can also ask for an ELA - Express Loan Approval to help increase your chances of getting your offer accepted. An Express Loan Approval is when the bank underwrites your loan up front and gives you and your agent a "Loan Commitment" letter (aka) guarantee to close. This will also allow the agent to put in a (15) day or less close. The ELA is a full underwrite minus the appraisal which is usually done within the first 7-10 days.

This makes your offer stronger than the other finance offers which are usually on a 30 day close.

Ryan,

One thing you can do is talk to a qualified Banker/Loan Officer and have them run a credit report.  Ask them up front to run your report through a "Wayfinder" or "Rapid Rescore" program.  There may be a fairly quick option to get your Fico scores up to or above 600.  If its recent late payments there are some options for that as well.

You are going to get crushed with a Fico score below 600 trying to get a mortgage.  Hard money might be an option but it may be wise to fix the problem a head of time.  

Yes,

You can take out usually 75% LTV using a DSCR or Portfolio program both will allow you to close in an llc.