All Forum Posts by: Jeff Dulla

@Ana Barreda I would seek an attorneys guidance on what is truly the letter of the law. But within your mortgage docs if you buy as a primary residence, it says you will occupy within 60 days after closing and intend to live there at least twelve months. I see plenty of people on here and in my job, buy something as a primary home, live in it a year or so, and buy a new primary converting the old one to an investment.

When this happens, nothing changes with the terms of the old mortgage. Not that I have ever seen. In fact Fannie has guidelines that will give you rental income from your current primary when you buy a new primary and flip the old primary home to investment. But definitely check with an attorney for the best legal advice.

@Joshua Fulenwider $1,000 total regardless of price?

This post is two-fold. First to introduce a product that has been out for a little bit but is gaining some ground/attention. The second is to question not IF it is a bad idea for the industry but just how bad could it potentially be.

The program revolves around HomeReady and HomePossible loan products which allow buyers to finance a home using just 3% down. This program in particular gives a 2% grant to the buyer to help cover some of the down payment. Taking a 3% down loan to a 1% down loan. Very minimal strings attached, interest rates are pretty damn low.

Obviously the goal is to put more people into homes. And given the right person, maybe it isn't a terrible idea if you are going to prepay the heck out of your mortgage. But I am certain that is not what the vast majority of people will do.

Thoughts/debate welcome.

@Samuel S. Indeed, HomePath (Fannie) and Home Possible (Freddie) have been discontinued in terms of the aggressive loan programs that were associated with them. You will still see those terms used in conjunction with the listing, but the aggressive financing is pretty much gone. 

In the original versions, no appraisal was required, no PMI on loan structures with less than 20% down and investment properties could be bought with as little as 10% down. But it has been probably three years or more since it was discontinued.

I think it is a matter of time before you see continued loosening of investment property financing. Heck, there is a 1% down program for owner occupied properties. 

@Dane Porter Here is VA guides on rental income. Veterans United is pretty big but maybe there is an overlay that they:

Continued on next page

2. Income, Continued

@Michael Ringwood ll Mortgages are recorded. Therefore you can find out what the loan size was when it closed. From there you could forecast our a 30 year amortization and have some idea. Not sure about the best way to look this up but I know you can simply search the county recorders website. Or I am sure there are lists for sale.

@Miguel Biberos 

You can do both at the same time. Some lenders will go up as high as 90% with the HELOC. So they can structure a rate/term refinance to cover your current first lien and a second behind it up to 90%. The rate will be higher on both mortgages as the loan to value crosses over the 80% threshold. Just reach out to a lender and have them quote you. I know there are a few on here who handle CA.

@Pat McCandless - BP member - @Brandon Hall is your guy. Investor niche. 

@Daniel Patton You definitely need to speak with a real estate attorney. Would you like me to give you the name of one or two?

@Kevin Huang where exactly is this at? Cross streets? The exact location means a great deal to evaluating this.