All Forum Posts by: Jason Wray

Peter,  

You can still qualify for an FHA loan as long as it is being purchased as your primary home. BUT! if you and your wife are going to be on title of that multi-family home it will be recorded in the county its in and that will show up on a title/property search. So when you go apply for an FHA mortgage until you own it over a year and file a tax return. That multifamily will be a liability and your income will be effected- meaning your DTI - debt to income ratios will be higher due to the MF's mortgage payment, taxes, & insurance.

Another words even though it is a seller held your income will have to support that MF costs and the new FHA mortgage.

Dimple

I have helped a lot of buyers close their homes in Cape Coral and every year a small portion of those buyers have to file a flood insurance claim.  Down here in Florida we do get a lot of storms and rain but its hit or miss in many cases.  I have seen some claims get denied because the owner did not elevate their personal belongings.  Best thing to do is be prepared and make sure you carry flood insurance and possibly look for an elevated property.

I would watch where you buy in that market because it has seen a high amount of inflation...

Damon, I have never heard of them but feel free to send me an email.

Mason,

There are a lot of lenders still offering HELOCS. Question, do you only want a HELOC or are you in a position where you would benefit from a cash out refinance. Unless you have an extremely low rate on your current mortgage a cash out refinance may also be a good fit?

Rick,

That would not cause an issue with buying an FHA loan in regard to having a rental first. The only issue would be DTI if your debt to income ratio is within range it would not be a problem. So for the first year until you file tax returns to show a profit/loss on that rental if you were to buy an FHA home prior to filing tax returns the lender would hit your income with both mortgage payments. The lender does not calculate the fact you have a partner and they pay half the costs!

David,

Reach out to me your lender is giving you ill advice.

Hopefully everyone had insurance and if you did you need to be very aggressive with filing and staying on top of your claims.  You need to be calling every day and making sure your list of personal and property damage is extensive and very detailed.  If at any point you hit a road block and feel it is to much to handle I would advise hiring a public claims adjuster to get your claim maximized and completed faster.

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.