All Forum Posts by: Jeff Dulla

@Brian T. The big difference is going to come down to down payment requirement. Maybe less so with this initial purchase because you could use Home Ready or Home Possible if you qualify with income restrictions. But outside of a program like that, MFH are going to require 10%+ for down payment. More often than not, even more - 20%+ down payment. 

With a single family home though, as long as you are going to occupy it, you can put down 5% (and with some programs less). For many investors, reserving capital is obviously very important going forward. The SFH is going to be your better shot at doing it but I would doubt that your cash flow will be as robust.

@Cheyenne Davis If the home foreclosed and was actually part of the bankruptcy (you can actually look all of this up with the county), then the tougher question of whether or not it matters that the wife wasn't on the mortgage is a moot point. Conforming is a four year waiting period - this is straight from Fannie below. I would ask them directly, exactly the date their bankruptcy was discharged and ask if they are certain the foreclosure was included in it.

Within the bankruptcy paperwork will be an actual schedule that shows all debts and how they were treated. The home will show up on that schedule and therefore will clearly be a part of the bankruptcy. If that is on there, I would think you have a deal. If it is truly a foreclosure, you could go FHA or Non-prime. If it came down to the question of whether or not the wife is implicated even though she wasn't on the mortgage, I have seen it go both ways depending on the bank:

@Jonathan Smith There is no percentage I would recommend using. Many costs are not going to change based on the price of the home. So using a percentage is a failing enterprise. I would recommend doing a few things if you are feeling up to it:

- call a local appraiser and ask what the average cost is for a single family home appraisal for a mortgage.

- cal the title company and ask for al buyer related costs with X priced purchase, in  X county, and all transfer stamps and costs associated with it.

- outside of that, credit report is about $100. 

- lender fees will range all over the board - $500 up to thousands. You want to keep this figure lower but often it has a close relationship with rate as well so lowest isn't always the best.

Long story short, find some reputable lenders and get quotes 

@Albert Mayzeles I would check with @Chris Mason as I see you are out in CA. I know for the situations I have seen in Chicago, it is not a requirement to be a first time home buyer. 

@Fernando Angelucci 

It follows your typical Fannie/Freddie guides. I know that is a pretty broad thing. Self-employed can mean a lot of different things in terms of income interpretation depending on how much your accountant is trying to hammer down your bottom line. Definitely something that would need to be explored in depth for you up front. 

@Chris Mason Exactly. I am glad you share my enthusiasm. And unlike so many "products" discussed on here, incredibly feasible without features that are detrimental to the borrower. 

@Donnersson Penna - Thank you Sir!

@Sung Park No different than almost any of these programs - Fannie sponsored, Freddie sponsored, bond program, etc. The fact it may not stay long doesn't change the fact that right now the program is feasible and advantageous. 

@Sung Park Yes, it is census tract based in terms of whether or not there is an income limitation. For example in Chicago though, and the suburbs, I have seen no income limitation. 

There are limitations to every single program that exists out there. That is nothing new. This program is A LOT more realistic than any hard money, private money structure I have seen to date. 

I see a lot of general terms for programs tossed around on here - Private Money, Hard Money, Portfolio Loans, etc. The vast majority without any concrete information. In response, thousands of people on here are wondering around in search of these mystical Hard Money loans that they cannot find. 

Many of these overnight solutions, get a huge loan with no income type loans are exactly as they sound, too good to be true. So I wanted to bring up a Conforming product that does exist and could be useful. Freddie has a 5% down product that works for MFH (yes, even three and four units). In fact the rates and PMI are actually better than many normal conforming loans.

You do have to occupy the home. But it sounds like a potentially great way to get started. You also have to take a homebuyer education class and landlord education class prior to the note date. 

Most any mortgage banker or broker you know should have access to this program. Hopefully this is a much more realistic solution for many of you out there.