All Forum Posts by: Jason Wray

Mathew,

You need a lender who does not have overlays.  You can use alternate income guidelines or bank statements to justify that scenario and it will work.  Let me know if you need a walk through...

Michael,

There is no need to wait to buy a house until you get married. Yes, $45K is plenty to invest into a SFR home or a (2-4 unit) preferably by living in one of the units. FHA is a great option to get into a 2-4 unit using the 3.5% down payment option. Live in the unit for (12) months and prior to the move refinance the property into a conventional loan. That will free up your ability to use the FHA loan program again and not have to worry about red tape rules.

This will also give you the opportunity to live with your Fiance' and test the waters. This will be your first home and investment together and if you keep it fun and profitable. This can end up being something you both learn to love to do together as a power REI couple!

Dakota,

Have you looked into doing a bank Statement loan or an alternative income loan program.  These programs are designed so we can help self employed borrowers obtain a loan.  One is BK statement where it uses the gross deposits of the personal or business account to qualify. The other program will use just one full year of tax returns or 1099's and if the business has been open for 3 years or more you avoid previous years income & losses.

There area lot of new programs out there for SE borrowers just make sure you check with other banks/lenders.  

Jason,

The first rule of thumb is never put all of your eggs in the same basket. Reach out to get a second quote and check your options comparing apples to apples. That way you can see who is offering the best Rate, APR, lesser of the points, buy downs and days to close!

Burke,

Coming from someone who handles this everyday I find it a lot easier to offer financing to a couple who buy a SFH as a primary. the they do a little bit of work to the home and turn around in 6-12 months and refinance it taking out the cash they injected and possibly more for future renovations and down payment money. The rule in lending is you will always get a lower rate and a higher LTV loan to value on your primary home.

So if you tie up money in a smaller investment and then need cash your limited by two factors the loan size and the Non-owner occupancy if it s a rental you get a lower LTV. (less cash out). But the DTI is still going to take a hit even with a smaller to medium size loan. So you might want to position yourself for a bigger bang for the buck!

Ashley,

What would make the most sense in your particular situation is a "cash out refinance" especially now - meaning before you turn it into a rental (Non-owner Occupancy). The rates for a 30 year fixed are about a point or more less if you refinance as a primary versus a Non-owner Oc/Rental. You also get the higher of the LTV at the lower rates!

Keep this in mind as well cash is king and being cash fluid is a good thing when buying more investment properties due to the PITI monthly reserves requirements by most banks/lenders. You also have the down payment in a source and seasoned account rather then a open end mortgage/debt obligation that increase your DTI...

Chris,

Depending on the scenario and complete file details I know of a few solutions to your purchase needs for that MH.  Send me an email lets connect!

Dana,

Yes, you just need a DSCR Non-Warrantable condo loan. These are a 30 year not a 40.

Jennifer,

Bank could use the court filed paperwork and use you as the primary owner.  You would draft up a letter of explanation to go with the paperwork submitted to the UW.  Your husband would have to sign some paperwork drafted by the title company but it can be done.  I am always available for help or for questions so feel free to reach to me or send me an email.

Mike,

Always a good choice to use the second home option to save money 10% down.  Rates are great pretty much the same as primary since they just dropped the LPA fee's.  Send me an email would love to help and answer any questions and go over options.