All Forum Posts by: Jason Wray

Jason,

You are now wrong it actually has to do with something called "high costs".  When a bank/lender originates a loan there are certain parameters that have to be followed in order to meet the "QM" quality mortgage rule.  So now that inflation is at ridiculous levels bankers/lenders have to submit to either NON/QM or through a portfolio channel.

Keep in mind you can still buy the rate down to make it make sense on a long term hold. Best time is after the renovations so that the ARV allows the equity to be used to buy it down instead of coming out of your liquid reserves. You do not see it as much now a days but the seller is allowed to offer up to 2% Max on a seller contribution which can be used to buy the rate down as well.

Yes, it's done to basically avoid having to pay the MI - mortgage insurance which would be required if you were over 80% LTV on a traditional loan.

You can also use a portfolio program up to 90% No PMI and No prepay but on an Hybrid ARM.

Cash out tax free and buy another property keep the doors and cash flowing going!

Leland,

Send me an email let's connect or talk Friday 10/07 I would like to talk about some details.

The reason why I mentioned DSCR is because you can run the cash out refinance under either one of those programs delayed financing or through DSCR which would use the rental income to qualify up to 75% if its an investment property.

DSCR will use th rent schedule or the proposed lease which ever is higher but lease must include a cancelled check for first/security deposit. Again these programs allow for cash out without having to wait (6 months title seasoning)

Hopefully that clears up the confusion!

Peter,

When a borrower applies for a mortgage we send out a pre-approval which is good for the loan amount not the property so it covers you as a blanket approval. It is alwasy good to offer the address to the banker up front so that they can run the real numbers using the correct taxes, home owners insurance, Flood insurance if applicable as well as any HOA fee.

Paul,

When you buy a property using "All Cash" there is no seasoning you can take cash out same week. It's called a delayed financing or DSCR. You cannot use an appraisal until the (6 month) mark but if you do any renovations/rehab you can show proof of receipts and the bank will use the purchase price and the total rehab/repair cost total and allow up to 75% cash out.

Some lenders will not allow the repairs/renovations to be added into the cash purchase so make sure you ask those questions up front!

Juan,

Yes, you can use the rental income of the proposed Duplex to qualify for the loan. If you choose FHA you will only need to put 3.5% down. You can also use DPA- down payment assitance as a first time home owner as well which can also cover closing costs.

The lender should be using 100% of the rental income typically on the rent schedule on the appraisal unless there is a currnt renter/lease. 

Yes,

Reach out and talk to a few top agents or broker owners and ask if you can help them do any marketing or call leads to set up appointments.  They can have you doing a lot of different things to help them out with reaching buyers or with office work.  This can also benefit you by helping you shadow and learn from a top agent or broker owner to learn the business.

When you turn 18 you can then go out and get your license and have experience under your belt!

Brandon,

No need to wait buy now. You can always do a rate buy down during the transaction to help lower the rate. Another thing is after you have owned it down the road and you owe a little less or after the ARV you can refinance and lower the rate. These rates are actually what normal rates look like for investors and they are going to be here for awhile so why wait and lose benefits like passive income, tax benefits, and a chance to build equity.