All Forum Posts by: Jason Wray

Flavia,

It does not have to be 100 Miles away it can be closer as long as it makes sense. It cannot be a Multifamily home as it must be a single family. Typically a vacation home/second home is in an amenity area by the beach, or by a lake, river, in the mountains, out of state etc. Second Homes are 10% down and do help you save money. You can also rent out a vacation home/second home typically 6 months out of the year or use it as a STR AIRBNB/VRBO.

There is a alot of confusion surrounding second/vacation homes that you must live in the home only and cannot rent.  That is false you can buy it use it then transition it into a rental because you have that right.  Its called a "Change in Life Circumstance" which means life and our decisions can and will change without notice.

If you are trying to buy a home calling it a second home in your immedite neighborhood it will not pass.  You can also buy an investment home with 15% down so make sure you shop around.

John,

If you have great credit and can show income either W2 or 1099 I always recommend avoiding a broker and going directly to a Banker or Lender. Choosing an FDIC Bank that covers Nationwide offers you a better option especially if you go with a Fullly Delegated Bank. Small local banks or credit unions have tougher guide lines and overlays.

Ben,

You can use a personal loan, HELOC, or refinance a property to take cash out if you own a primary. Either way its a great start to get into the REI world.

Jarret,

FHA & FHA 203K are the same and they do have a 12 month "Expectation" for 12 months for you to live in the home or one of the units. However if you could refinance the home after 6 months and transition the home into a conventional loan. You could then move out and treat it as a rental prior to the (12 months). When you refinance on the REO - real estate owned section you list the home being refinanced as primary but intended to be use as rental/second home.

You might hear that you cannot refinance the home and move out but you 100% absolutely and move out if you set it up "Correctly". This is where a seasoned Banker/Loan officer wold come into play to make sure the 1003/REO/application is done correctly.

Dawn,

There are more than a few programs for the Jumbo primary home as well as Second Home purchase with 10% and even Zero Down.  There are Portfolio programs and even a Medical Program if applicable where you can go up to $2MM if you or partner are in the Medical Field.

Claudine,

You can always buy an investment home with 15% Down and since you are in Clearwater, Florida there are some good deals just north of you in Holiday. There are also condos in Largo/Seminole for under $125K just be careful of the HOA fee's.

I am in Pinellas County as well and its tough around the beaches but inland offers a lof of deals.  Including South St.pete all the way down towards Eckerd College.

Misti,

You can still qualify for a mortgage using some of the newer programs out now in 2023. You have Bank statement loans, (1) year 1099 program, CPA Letter option, and DSCR for any investment home purchase which requires (No income/No tax returns) it uses the future or current rents to qualify.

You can also use the bank statement loan and (1) year 1099 for primary homes purchase and refinance.

Kevin,

You can refinance the rental and pull out up to 80% LTV cash. You have to kind of accept or adjust to the increased mortgage amount and make it work out in the long run. There are some things you can do in the short and long term to help with increase in mortgage.

Ultimately the cash is going to allow you to buy more doors to increase your cash flow to put you into a higher passive income so it works out.  Again there are things you can prep for with your Banker to set up short term lower rates and locked in long term rates using buy downs as an important feature meeting your burn rate for the LTR.

As a step by step answer I would just remind you if you need any cash you should refinance your current home "prior" to moving out and transitioning into a rental. Primary Owner/Occupied homes get a lower rate and can get a higher LTV meaning more cash out than an investment home if you decided to refinance that home down the road.

Yes, you can have (2) people on the same loan if you are buying another Second Home, Investment home or in general. Just make sure you are using the person(s) who have the highest credit score and have income to qualify if you are using a traditional loan. If you go the DSCR route the income would be irrelevant.

DSCR but as a Foreign National.