All Forum Posts by: Jay Hurst

Conventional loans  (those that will be sold to Fannie/Freddie) require 25% down for 2-4 unit non owner occupied properties. However, you can get portfolio financing, assuming you have good credit/meet all the requirements, for 85% of a 2-4 unit non owner occupied.  The rates/terms are NOT as good as conventional but the financing does exist. 

Suburbs in Texas generally all have similar zoning restrictions on accessory units. 

On a non owner occupied townhouse you can borrow a conventional 30 year fixed up to 75% loan to value.  (potentially higher loan to value for for non conventional, but higher rate as well) This would allow you to get out of the ARMs into a fixed rate and pull out cash. Easy enough assuming you have good credit, qualify etc. Great time to do it as well with the recent slight down tick in rates.

Assuming it is non owner occupied, 25% for 2-4 units is correct. Fannie Mae Loan to value matrix

The issue is that the underwriter will see the funds coming into your account and you will be required to source the funds. So, you can not sneak funds even if you do not then for your down payment. But, gifts ARE acceptable source of funds for a primary residence (although not for an investment property.)  So, simply tell your LO you are getting a gift from your father and she will give you a gift letter for all parties to sign and you are on your way.

It is very possible to get a 30 year fixed in an LLC. Granted, the rates will be higher then an ARM but it is not just small banks who have these options.

Fannie/Freddie absolutely require the loan to be in your name for at least 6 month. But, you should be able to find cash out options inside your LLC but with less desirable terms then a conventional loan would give you. There are plenty of portfolio lenders who will lend in a LLC.

The "best" I guess is in the eyes of the beholder but your best rate would be to do a first lien cash out refinance on the non owner occupied property. The rate would go up but still in the mid 4's on a 30 year and high 3's for a 15 yr fixed assuming credit scores are good. Second liens on non-owner occupied properties are tough to come by. 

If the house is titled in an LLC even if paid for in cash you would NOT be able to get a conventional loan. Fannie/Freddie will require it to be titled in your name for 6 months before you can cash out. So, again, titled in an LLC your only option would be a portfolio loan.

You should be able to get a 30 yr amortization on a similar if not a little better on a portfolio loan  but you would not get the mid 4's on a 30 year fixed that you could get if it was titled in your personal name assuming good credit using conventional "delayed financing". Delayed financing is just a fancy word for pulling cash out of a free and clear property that you owned for 6 months or less. 

How long have you owned the property? Is it titled in your name or in an LLC?