All Forum Posts by: Jared Bouzek

@Martin Ceja You can purchase multifamily with both. HomeReady (Fannie) requires 15% down for a 2-unit and 25% down for 3-4 units. Home Possible (Freddie) allows you to put down 5% on 2-4 units but you cannot own any other properties in order to use Home Possible. They both have income limits. Also, these programs are for owner-occupants only.

@Robert Shelton Unfortunately, delayed financing would not be a good option for you because your cash out would be capped at what you paid for the property plus closing costs on the loan. So you would only be able to pull $65,000-70,000 out. 

Once you have owned it for six months, you're eligible for a conventional cash-out refinance up to 70% LTV because it is a duplex. Have your loan officer give you a ballpark on the mortgage payment and throw that into the BP calculator. They should be able to help you optimize your loan amount to make sure you remain cash flow positive.

@Martin Ceja This is really going to depend on your individual factors to get specific, but the majority of cases I see, conventional 3% down with lender-paid mortgage insurance comes out ahead of FHA because by the time you tack on the monthly MI with FHA, your total effective interest rate is higher than the conventional rate. Not saying that's a one-size-fits-all but it's true a good portion of the time. You just need to be careful of the income limitations with the conventional programs (HomeReady & Home Possible). Because we're likely going to see interest rates increasing for the near future, you probably won't gain anything doing FHA and waiting to refinance. If you're looking for a top-notch loan officer who is licensed in CA, you should connect with @Chris Mason.

@Julie Rhodes Welcome to Bigger Pockets! If you're looking for a local meetup, it looks like the next Erie meetup is scheduled for tonight. Check it out: Erie Meetup

@Paul OBryan Well when you think about it, the loan officer from US Bank has a vested interest in telling you to not let anybody else pull your credit because they won't be able to do a complete qualification on you without it. You'll probably quickly find that working with somebody besides US Bank is going to be in your best interest. Multiple mortgage inquiries within a short time period should have no impact on your credit score. At most I've seen a few points of difference with multiple inquiries across 2-3 months. If you truly are a high 700s FICO, it would take something pretty dramatic to drive your score down to the point where it even mattered.

I'm surprised that an agent would recommend you work with one of the large banks. Agents where I work in a highly competitive market avoid the big box boys like the plague unless they're just inexperienced and don't know any better. They're especially terrible at working with investors. As a first-timer, find a loan officer who knows REI inside and out, offers competitive rates, and communicates well. They will save you a world of pain.

@Jesse Gargus-Smith You are correct that FHA can be used to purchase 1-4 unit properties. I would recommend finding a solid lender who can guide you and don't rely on your agent for lending information.

@Account Closed had organized it. 

I do know of one other group that meets monthly specifically about notes here in Denver but none of them are active on Bigger Pockets to my knowledge. I've never actually been able to attend the Denver meetings myself. Seems like I always have a scheduling conflict. I get email invitations from them that I can forward to you if you pm me your email address.

@Colin Simon Welcome to Bigger Pockets. I believe you need to have a real estate license to manage another person's property in the state of Colorado.

Josh Straka Debt Service Coverage Ratio = Net Operating Income / Debt Service (P&I) Typically targeting 1.25 or something along those lines. These programs are not as set in stone as Fannie/Freddie conventional loans.

Josh Straka There are some tweener programs out there that are no DTI rental programs. Typically 3-4% higher rate than conventional but 3-4% lower than HML. I'm not licensed in MN but if you find a broker that can offer those portfolio loans they would be a good option for you. Qualification will typically be DSCR based similar to a commercial loan.