All Forum Posts by: Jason Wray

Nick,

Yes, there are a lot of disadvantages with FHA starting with the UFMIP - up front mortgage insurance premium they charge on every loan 1.75% of the loan amount($1,750.00 for every $100K). You also will be charged a .85% MIP monthly insurance premium which is every month for the LIFE of the loan (.85% x loan amount divided by 120months) example $100K loan x.85% =$70.83 added to payment) Now flip to conventional there is no UFMIP, and the MIP if the loan is above 80%LTV is based on FICO so the MIP is usually around .25 to .55%. The MIP also cancels at 78% LTV on its own!

Here is when you know you need FHA - Credit scores under 680, and you only have 3.5% to put down (Some guide lines are a little relaxed like FHA will allow short sales , foreclosure, Bankruptcy relief sooner than conventional with higher back end DTI allowed up to 58-59%

Shiv,

Yes, Most lender require an appraisal at a certain LTV. But if the LTV is under 80% and your not taking out cash it is very possible for them to skip the interior photos and do an AVM. Request to have the AUS findings ran under DU/LP and see if you can get an appraisal waiver.

What are they offering when you say attractive?

Lance,

Here are a couple of options you could refinance one or more of your current properties and do a cash out refinance. Pull some cash out and use it as a down payment on a 2-4 unit investment purchase. If you can get at least 20% down there are programs that can get you into the next MF. If not partner up with another REI and buy as a joint deal.

Lance,

The only way to go FHA to buy a MF 2-4 Unit property is if you going to live in one of the units. The way its generally done is a person who does not own a home buys a MF as their first home and lives in the unit for (12) months. Then after the 12 months with or without renovations they refinance the home into a conventional loan. FHA is more of a first time home buyer program or for someone who has had credit or other issues that may not fit conventional guide lines.

It's an attractive program that offers a low down payment options but its not easy to get an FHA if you live in a superior home. The other option for a lower down payment would be for a second home which only requires 10% down. Unfortunately they so not allow for you to use that on a (2-4) unit. That would have to be for a SFR (1 unit) and be an amenity style home. Like on the beach, on a lake, river, golf course, out of state, Ski in ski out etc..

Pablo,

I am not being picky because I am a Banker but unless you need to go with a broker for some reason. A bank will always be able to beat out any broker in rate and in fee's. You have to look at the program and your scenario but if you have good credit and are trying to buy a primary, secondary or investment home. An FDIC Bank with no overlays will always offer a lower rate because a broker has to meet a broker bucket in most cases 2.75 basis points.

That margin is built into the rate you receive but a banker can work on a lower basis point especially in a high volume situation.  We can also close faster in under 15 days if needed and 20 on average with less hands on the file because we approve, underwrite and fund the loan in house!

Darcy,

I know many of people who had NJ and went for NY and had no issues since the courses were almost a mirror image.  I also know people who went NY to NJ and said the same thing.  I think if you have a good grasp of the course and you already have NJ you will do fine!  Good luck and either way I would love to Network with you in both states!

Victor,

It is actually to have (2) FHA loans at the same time. Typically FHA wants to see at least 75% LTV or 25% Equity in current home. They will then look to see "Why do you need a new FHA Loan" so it would require extenuating circumstances for example:

1. Bigger home due to baby or growing family GLA - gross living area 

2. Closer to School or work place of employment

3. Natural disaster - hurricane, Fire, Flood Peril of some sort

4. Retirement or disability meaning needing a smaller home or home with less floors Condo to SFR

So you can apply for another FHA loan and become approved. But do not try and fool an underwriter they are trained so going from a single family home SFR - trying to get a duplex is not going to work. Trying to buy a smaller home less in value basically an inferior home to what you currently have an FHA loan on to date.

Yves,

If its same line of work and your W2 as soon as you get your first paycheck showing your full time income year to date any over time etc...

Amy,

One of the issues is your bank as they must have strict guide lines or overlays maximizing you at (6) on the W2 side. You still have the DSCR loan program and bank statement programs to avoid the tax returns/W2's. As far as the delayed financing those programs are still open :)

Yves,

When you buy an investment property you do not have to live in that area just show you can afford the mortgage.  When you buy a primary home you need to show how your going to either continue to work at the same company or if self employed continue to run the business.