All Forum Posts by: John C.
John C. has started 7 posts and replied 13 times.
Post: Finding a piggyback mortgage for a MF property?
- Investor
- NJ / NY
- Posts 13
- Votes 3
Originally posted by @Caroline Gerardo:
$822.375 is high balance loan limit for you with that score you should be able to do a STAND ALONE HELOC. Is graduate degree in the job type you work? Then can use current income. I don't do HELOC's I will refer to the right shop.
Yes, the graduate degree (MBA) is directly in the same field of work.
Please patiently excuse my ignorance here, but what would this hypothetical process/suite of loan products look like for this multi-family property, just so that I'm following you correctly? Again, with the goal being to keep as much of my cash liquid/keeping my downpayment minimal.
Thank you again. Also, open to other opinions/suggestions if anyone has any.
Post: Finding a piggyback mortgage for a MF property?
- Investor
- NJ / NY
- Posts 13
- Votes 3
Originally posted by @Caroline Gerardo:
Most piggyback seconds require 721 middle FICO score and full doc (IRS taxes).
There are 90 LTV loans owner occupied available. Many ways to go- Can you qualify with taxes? Or 24 months bank deposits? What county is this?
Non owner debt service ratio requires more down and no second. If you have the FICO you could apply for a HELOC after you close, but it will be full doc.
- FICO of just a hair under ~820 and TransUnion/Equifax are 790+.
- Taxes might be a bit difficult, as I was in Grad. School during the last two years. 2020 only had ~6 months of income, with 0 in 2019. That said, I have my contractual job offer letters, bank deposits, etc.
- County is Union County, NJ.
Post: Finding a piggyback mortgage for a MF property?
- Investor
- NJ / NY
- Posts 13
- Votes 3
Good morning BP,
Long-time lurker, first-time (very enthusiastic!) poster.
I'm looking to make my first foray into RE investing, having spent a decent amount of time analyzing potential properties. While I have the cash to put forward as a downpayment on this property I've zeroed in on, I'd prefer to leverage that cash for incremental investments. For context, it's a $700-800k 2-unit MF, which I'm indifferent about in terms of going the owner-occupied vs pure investment route. I don't qualify for USDA / HomeReady, and don't currently own any property that I could use to leverage a HELOC or anything similar on.
I read up on piggyback mortgages (80/10/10 and 80/15/5), and I was hoping to hear from those with experience about the reality of finding/executing on these. My credit rating is 790+, my income / assets would satisfy any mortgage from 20% down to 0%, and again this would be my first purchase.
Not to barrage with additional questions in addition to the overarching one above, but:
- What type of originators would handle this? Where would I find them?
- Are there any spoken / unspoken rules I would need to know about approaching these lenders for these types of loan arrangements?
- Do the number of units matter? I know there's a whole schedule of potential LTV ranges for SFH vs 2-unit MF vs 3-4 unit MF, with this also changing by OO vs pure-investing status.
Thanks BP!