All Forum Posts by: Jason Wray

Eddy,

Why a credit union? Reason I ask is a CU is really great at offering a good rate on a new car, personal loan, primary home and in some cases a small LOC line of credit. What they are not known for is flexible guide lines and offering investor friendly mortgages on rentals. Especially when the rentals are (2-4 Units) and you need to use the proposed rents a.k.a - DSCR program. CU's also have tough guide lines that require higher fico scores and offer lower LTV's on cash out and require higher down payments.

Generally the turn times (Closing timeframes) are not as fast or as good as some lenders/FDIC Banks. They usually have to ship out (electronic transfer) their files to another department in most cases other states where a "Remote" processor, UW Analyst, and DE Underwiter all have to review the file documents, appraisal, title etc which slows it down. I am not bashing CU's in general but just providing a little insight if your looking for your best options.

Using a larger FDIC Bank that is Fully Delegated or Full Eagle Lender is really the best way to go for lowest rates & program availability. Feel free to reach out if you have any direct or specific questions!

Take out a LOC Line of credit or a cash out refinance on another property.

Send me an email or PM.

Dell,

In short Yes you could qualify but based on the amount of income you show would be the deciding factor. Because FHA rates are much higher now its a lot harder to qualify in general without having limited or part time income. If you are one of the few that has held a full time job as well then the income would be the deciding factor.

If you have more than 3.5% down payment saved or could borrow from a family member for teh 15% you could buy a home under FN or DSCR. But DSCR would be for investment purposes to rent it out not as a primary.

Davina,

Regardless of the property being held in an LLC you can still refinance the property if there is equity to pull out to start the renovations. DSCR will offer a 75% LTV cash out refinance while being in the LLC and allow you to close in the LLC. Other option would be to take out either a personal loan, LOC line of credit and use the funds to renovate and then refinance. ten use the new ARV to recoup the intial capital and pay off or down the LOC or P-loan.

If you own other properties Primary or secondary just do a cash out refinance on one of them to get the cash needed.  Rates may be a little higher but you can refinacne in 12-24 months and do a rate reduction loan.

 I sent you a PM.

Jonathan,

You only need one person to qualify on the loan but keep in mind your best bet might be just to use the DSCR program which will allow you to close in an LLC. DSCR also will use the rental income to qualify and not require your personal income or tax returns.

Juan,

Have you been Pre-approved by a bank yet or are you using all cash?

 Eliott,

Was that on a cash out refinance?  Have you looked at Portfolio options?

MT,

If you already have them in an LLC and carry a sufficient umbrella policy your in good shape. My advice would be to not worry about rates right now and tap into that equity while its on the plus side. If you want to increase your position you should be using that equity to buy more doors/REI. More doors means more passive income and more equity down the road for a stronger portfolio.

You cannot be afraid of these rates right now they will eventually drop and start to ease back down.  It may take 18-24 months but why sit on the side lines and watch everyone buy more real estate.  You can always refinance into a lower rate in 2-3 years.  Get the money now and use the equity while its on the positive side and the market is still doing well.  Focus on the long game and for retirement not so much the current rate enviroment.

So a cash out refinance may not be a bad idea and you can close in an LLC with the DSCR programs!