All Forum Posts by: Jeff Dulla

@Tim Viviano I would think it makes sense. See the weighted average for your two loans. Not sure what your loan to value or credit score is but I would shop a little bit and check rates. Seems to be pretty clear based on the numbers you gave though unless you are saying you will pay off the second in a much quicker time frame. 

@Joe Maron Not 100% sure if this would go through perfectly but I would say If you can prove it and it makes sense, not sure they could combat it. Meaning you would have to have proof, maybe from a contract that was fully executed, that these people bought the other 80%. The underwriter would probably also want an attorney or CPA to independently verify in writing that this happened and is the current structure. Long story short you would need to provide a substantial amount of proof that this was done.

@Joe Maron Most lenders have underwriters/underwriting departments that are digging into all kinds of things. They will pull records on the company to see who started the business, what owners/officers are out there, etc. While it is true that if your ownership on a K-1 is less than 25%, they will potentially give you credit for a salary and interpret you as an employee rather than an owner, it isn't as simple as that. There will be more items that the underwriter will request/look through. The burden of proof will be on you to prove, beyond a doubt, that you are in fact only a smaller owner in the company, that the vast majority of your earnings come from salaried work you do for the company and not work that you do as an owner/facilitator of the business. From what you said above, I am not sure you will be able to prove that. 

@Najat F Kessler Missed your subject line. Duh! I would take a look around at rates. 

@Najat F Kessler I am guessing investment property right? 25% down? I am seeing 5.50% today but that depends on the rest of the details like down payment, lock period, etc. 

@David Ordonez If you are talking about buying a two to three units property, living in one unit and renting out the other one (or two), that is completely allowable. You are still occupying the property or part of the property. 

@David Ordonez Thousands if not up to a million dollars or so in penalties and fines. Potential jail time. Not worth it. 

@Regina Jones would you be selling the property in the short term that the bridge loan would be tied to?

@Brendan Mcdaniels I think the most important question to ask is why did the appraisal come in lower? Are you sure the value isn't there? The appraisal process is obviously helping to vet things out for the bank/lender but its also supposed to protect you from a bad investment. 

If you believe the value is there, you can ask the lender to rebuttal the appraisal or see if they have a policy that allows for you to point out a material error in the appraisal and ask for a new one to be done. Many lenders will not allow for another appraisal just to be ordered. 

@Justin R. Terminology used seems to always be different from state to state. But if by tri-plex you are referring to a three unit, then yes the cap is at 70% for a cash out. If by tri-plex you mean a single unit with three stories, than the cash out loan to value should be at 75%.