All Forum Posts by: Jason Wray

Hi Catherine,

I sent you a message, would love to connect & Network!

Kimberly,

Yes, you can use 75% of the other units market rents to help qualify.  The appraiser will complete a rent schedule on the appraisal to show the average rents the underwriter will use to qualify.  You do not need to pay for an appraisal every time you shop you simply reach out to a qualified real estate agent in that area who should have that information.  In some cases you can also use zillow and put in the address or near by homes to see an average of commen rents in the area.

Make sure you get a pre-qualification from a reliable bank/lednder so that you know your DTI - debt to income is going to work for the property and loan amount.

Benjamin,

I would add in a step in after step 1 prior to step 3. When you buy an FHA home one thing you want to do as quickly as possible is refinance to convert to a conventional loan. Typically the buyer will wait 6-12 months if the equity is available and take cash out while refinancing into a conventional loan or just refinance into a conventional loan. Couple of reasons is FHA carries a higher MIP versus conventional PMI so you can save money by eliminating it with a 80% conventional or lowering it up to 95% LTV conventional.

The other thing is if you plan to buy FHA again your going to want to convert the first home "Prior to moving out" into a conventional to avoid FHA issues. You can have (2) FHA mortgages if your buying bigger or going from a 2-4 unit multifamily into a SFR. Best way to avoid issues is to refinance out of the FHA and into the conventional to free up all of your FHA options.

Take a look at Portfolio to see if the DTI can be structured with an exception. Portfolio Investment loans offer 15% down on a Hybrid Arm.

Simon,

You also have places like Knoxville, TN where you can still get a great home and not over pay and be uder $800 a year on property taxes.  4 BD/2 BA home 1700 sqft homes under $180K

Yes,  A second home is allows to be rented a portion of the year.  You do have to keep in mind that some lenders or credit unions may have their own guide lines.  The question is open to other opinions because you can fund a second home under Fannie Mae, Freddie Mac, Non/QM, Portfolio, Private capital.  So when you ask can a vacation home/second home be rented the answer can change based on funding source.

FHA 203K cannot be combined as a small loan it must be used as a the main loan. You can use an FHA 203K loan and a DPA down payment assistance loan. CHENOA is a popular loan option where is covers the down payment and the renovations and repairs are covered through the 203K part.

Eamon,

First off you shold not be paying points on a primary home. Questions you want to ask should be related to program availability such as program options and pricing. Fannie Mae offers a 3% down for a SFH if you go that route. FHA is the go to for the 2-4 unit multifamily but carries the higher MIP - Monthly mortgage insurance. You can elect to pay rate buy down for a lower rate but again not broker fee's or lender points.

Compare your "APR" to other banks/lenders as well as asking for a "locked LE" Loan Estimate to see what they are offering on a (30 day lock) There is a lot of "Bait & Switch" going on right now where a loan officer sends out an LE "Not Locked" and priced on a 5 or 10 day lock for a teaser rate. Find out what thier "Turn Times" are and how fast they can close. If you cannot close in less than 30 days walk away.

Keep in mind the APR is going to tell you what you are paying for that rate and fee's in total.

Harrison,

One thing you can consider is a "Delayed Financing" option which allows you to buy a property by paying "All Cash" and getting up to 80% LTV back day after you close. This program allows a buyer to use thier own cash liquid or from a HELOC and since there is no mortgage or lien paid in cash. The program will allow for an 80% LTV cash back based off of the total purchase price plus total fees/costs.

This allows you to get the cash back and not have to wait for the 6 month title seasoning.

Connor,

Traditional DSCR loans offer a DSCR down to .75 of total rents. Have you looked into getting a a quote on a Portfolio DSCR... They also offer No prepay or up to 3 years for the lower rate option.

Most DSCR rates are in the 8-9 percentile and offer a buy down option as well for a LTR.