All Forum Posts by: Jason Wray

It depends on your current situation are you in a conventioanl, FHA or VA loan? If conventional FHA is a great way to get into a 2-4 unit and only put 3.5% down. If you are currently in an FHA loan going from SFR to Multifamily is going to be a hard sell unless 2-4 unit homes are common to the neighborhood.

If you need any cash I would refinance the home before you move out so that your getting the primary home rate and higher LTV. That is also a good way to get out of an FHA loan and into a conventional loan to free up your FHA options as well.

Brad,

If you have the down payment you can put as little as 15% down on an investment property which includes, SFR, and any 2-4 Unit Multifamily. If you do not have the down payment you can take it out of your primary that way you can use some of the equity. There are a few programs you can choose from for the purchase like Portfolio, DSCR or traditional.

Zach,

You can reach out to Villa Homes they build and offer financing for ADU's in Cali. The other option would be to tap into another property like a Primary would be my second option.

You can just type in Villa Homes on the internet and they should Pop-up.  I would send the link but not sure if that is allowed on forum.

Sarah,

You never want to lock into an agreement with a "No float down" option. That shows a couple of things one its a lender or small brokerage, two its a branch or loan officer that is heavy on commissions. There should always be a free float down but you typically get that with a bigger Bank/FDIC because "Bankers cannot make commission on the rate hikes". I always advise avoiding a lender/broker if you have good to excellent credit to avoid lender points/broker fee's of 2.75%.

You also do not need to lock in a rate right now for 60 days if you are shopping do not lock until you enter into a purchase contract.  When you lock a rate and it goes past the lock date you pay a rate lock extension fee.  Those can pile up quickly and the lender should also avoid that due to penalties and interanl fee's on the percentages of "Lock & Fallout".

I would tell you to alos get a quote from a bigger bank FDIC and compare rate and total costs!

You can buy it with a friend or a business partner and combine the income and assets to buy the house. Unless you have 20% if you did you can use a DSCR loan where they do not use personal income. Last option ask a family members if they will co-sign and you can go in together.

Andre,

Buy it as a primary if you do not own a home as of yet with 3-5% down.  If not refinance your home take some cash out for the down payment.  You only need 15% down for an investment propert not 20%.

Bryan,

Just to help understand are you buying as a primary or investment.  I ask because I am not sure of any lender doing 10% Down on an investment Non-Owner Occupied (2 Unit Duplex).  

Chintan,

There are a lot of great places places to invest right now I am seeing a lot of activity in IN, TN, FL, OH, and may other states. Reach out to Beau Matlock who owns Matlock Realty Group in Indiana and ask him to send you a property list of what SFR & 2-4 Units are available. I think you might be amazed at some of the price points and cash flow opportunities.

If your looking to buy in the $250K range that puts you into the 2-4 Unit range just might have to do a little TLC or buy turn key.  

Nivetha,

Loan limtis just changed this year to allow a Conforming loan to go up to $726,200.00.  In some Counties/States the amounts can change on Jumbo versus High balance.  Jumbo is Non-Conforming which means it is a loan that exceeds the conforming loan limit.  There are some acceptions in certain states where they alos consider loans above $726,200 as a high balane and not Jumbo.

Conforming loans require 3-20% Down payment offer more flex on DTI and FIco requirements backed by FNMA/FRMC. Jumbo require more PITI reserves, Higher Fico's, Lower DTI, Not backed by FNAM/FRMC adn require 10-25% Down. Unless its a special program Like Doctor/Medical loan then they cover 100% No down up to $2 Million.

Saqib,

You can use CHENOA fro example and once 36 payments are made on time the loan can be forgiven. They also offer a 0% Interest second that can be satififed with payment or by paying off during a cash out refinance. Are they teh best option NO, if you have or can save money or get a gift from family they are not the best option. Fannie Mae has a 3% First time home buyer program that can be easily obtained and it helps you avoid FHA MIP and the 3-5 year wait versus DPA.

You also have Gov Grants that come out each year that range form $5000-$10,000 if used for first time home buying.  You have to get in first and fast and use a bigger bank that has access to these specific grants due to certain number of grants per institution.