All Forum Posts by: Jason Wray

Sal,

Give me a call reach out to me via email or just go to my profile.

Switch over to conventional and put 15% down or be able to have the renters out within 60-90 days after you close.

Sandi,

It is counted as debt only because you have not filed a tax return yet to show schedule E income.  Lender cannot use rental income or lease because there is no tax return to show net profit/loss.

Chris,

Just skip the HELOC having (2) loans and an open end line of credit is treated as additional debt and can cause issues. Just do a cash out refinance with one loan, one rate, and a 30 year fixed payment.

Aaron,

I remember being in that situation years ago since I am also in lending. I am an FDIC Banker now so its a lot easier than back when I was a loan originator with a lender. Long story short you are in a good positon to do either a DSCR loan or a Bank Statement loan. The bank statement will look at your gross deposits and use calculation to divide that into a monthly income to pass your DTI requirement. You can actually hit up to a 50% DTI with that program but not all lenders carry that option.

DSCR- debt service coverage ratio will allow you to use the rental income to qualify for a home that currently has a renter(s). You can buy primary for a duplex for example and the renters monthly payment must hit .75-100% of the proposed PITI payment. I am not sure who you work for but you should not be considered "commission" legally due to the fact all originators must be paid W2 income. although you get paid off of a loan officer compensation plan you should still be getting paid a hourly wage even as a draw against commission. If you are not than your company is violating a few thins labor and wage and Dodd/Frank rules.

This coincides with being W2 you mentioned only 1 year but its actually not commission and if you had any sales job or similar line of work it would be used to complete your full doc situation

If you want to talk about this in detail feel free to contact me through my profile.

Will,

You generally always wait at least (6) months due to the title seasoning requirement in order to use a current appraisal. Unless you purchase all "cash" then there is no wait but you can only use the total cash purchase price as the value. You can actually do a refinance right now up to 80% LTV if this is a SFR (1-unit). That would put the loan amount at $264K based off of the $330K value. That would leave an option to utilize $26,000.00 in equity based off of the $238K loan.

That's not a huge chunk of change but if you can also lower the rate there may be a tangible benefit on top of the cash out.

Corey,

First bit of advice is to do the cash out refinance now before you rent the home out to anyone. If you are not occupying the home during the application process is will be considered a rental/NOO - Non owner occupied home. Which means two things one you are going to get a higher rate and you will not be able to go up to 85% LTV cash out. You will be you be capped at 75%LTV cash out as a rental property.

Same thing after you take the cash out you then rent the home and buy the nest home as your primary requiring a lower down payment.

In most cases when you look at a buy down if it presents a benefit cost wise within (36-48) months it might be worth the cost now for the long term benefits.  But in all honesty you could get a better rate then that at less of the cost and instead of a large buy down just do a "rate & term" refinance down the road into a shorter term/lower rate.  It will cost to refinance but not $7500.00...

Adam,

If this is your Primary your paying to much in margin/buydown and that start rate is already high?  Are you going through a broker or smaller lender?

Jason,

I would advise 100% do a cash out refinance and buy the next property while equity is available. My question would be why not buy (2) properties and split the cash into two down payments. You end up with two rentals instead of one and it would be a better ROI in the long run. There are a lot of new programs that offer higher LTV options for investment properties and the income qualifications for DTI are more open to alternative income options - Bank Statements, DSCR, Partial year SE. etc..