All Forum Posts by: Jeff Dulla

@Carlos Araujo @Russell Brazil is absolutely right. Quicken is the same as any large retail bank now - overpriced. Talk to some local agents and find out who the trusted mortgage banker is. A mortgage banker will be able to shop rates but also handle the loan in house. In my opinion- residential mortgage bank is your best option.

@David McLaughlin what is the credit like? Have lots of non-conforming, portfolio options. But need to know the details, what the goal is, etc. Things are loosening up but just a question of details for sure.

@Joe Splitrock Desensitized? No. Experienced in the city and aware of what it is like to live there? Yes. 

The city of Chicago is easily one of the most beautiful, clean, large cities in the entire world. I lived there for ten years - part of that time  with wife and child. At no point was I ever putting my family in any more danger than I currently am living in a really nice suburb of Chicago. Bad stuff happens here too.

Chicago is just like any large city - there are A LOT of people living in a centralized area. Whenever you increase population by that much, there are bound to be more instances of violence. As everyone else on here has said but apparently no one wants to listen, a disproportionately high percentage of the violence happens in very isolated areas. These areas are also not necessarily places that you have to travel through unless you would like to. Even with that said, I reverse commuted through many of the "less desirable" areas on a daily basis, with one year old in the car. Not once was I ever harassed or felt like either of us were in danger. There are lots of great people in those areas too just trying to survive on a daily basis. 

Unless your are completely ignorant of the area, or stupid, you can avoid putting yourself in any danger in Chicago.

I feel bad for people that have the same opinion as you. The city of Chicago has so much to offer people with a vast array of fantastic food, music, life, and cultural experiences. I feel extremely lucky to have lived and still work in the city. I am certain, because I live it, the vast majority of people I meet do not feel like you do. Droves of  professionals into their late 30's, 40's, 50's decide to stay in the city as young people continue to come in to popular areas. I cannot speak for the city as a whole because blanketing the entire city when speaking is dumb and violates probably the most essential cornerstone to great value in real estate - location, but for the popular areas, a decrease in population seems to be the exact opposite of the truth. Supply can't keep up with demand whatsoever and it doesn't seem like it will any time soon. 

And if sensationalized news is any indication on things, I think you guys are in some trouble in South Dakota:

http://www.washingtontimes.com/news/2017/feb/4/is-...

@Joe Splitrock Please tell me that is a joke (your overall commentary and not the part about the grandmother). 

@Richard S. For what it is worth, I am with you on this. I do not get the BLIND love for hard money, private money, etc. There is a reason it exists - to do loans that are viewed as riskier. It has it's place, but it is FAR from the end all, be all. And as the demand for investment properties has increased, prices have increased and the need for cheaper financing is only strengthened.

Yes, there are plenty of conservative banks and guidelines. But there are also plenty of banks and non-bank lenders that will lend with zero overlays. People on here have been jaded by working with realtors that didn't know what they were doing or didn't look out for their best interest. As well as terrible mortgage people that didn't know what they were doing or misled them. You need to find a good professional in NJ that you can stick with and have them help guide you through your future endeavors. There are plenty of opportunities to use conventional financing - you just need to work with someone who knows the guides. 

Don't be fooled by what a lot of people say on here - there is a reason to go conventional if you can. Cheapest and most stable interest rates you can find. Don't forget the importance of long term stability as the market is certain for future contractions. 

@Richard S. There should definitely be plenty of places out there to go through. Start by googling local Mortgage Banks - specifically a Mortgage Bank. Reviews can be a good start although I can tell you the good guys are busy and aren't always focusing on boosting their online reviews. I would call and vet some people. Typically Mortgage Bankers are going to do their loans in house, have a wide variety of banks/lenders to sell to. Obviously that means better rates for most people but really what that means is that they will have a wide variety of program types and banks with no overlays. I would love to help you but I am not licensed in NJ. 

@Richard S. 

So it isn't a worry about continuity of obligation then? At first it sounded like you were saying the banks were not liking it because you haven't been on title for longer than 12 months. Which actually shouldn't be an issue if you inherited them. I will post Fannie's guides below.

The tax returns are another issue. But maybe not an issue. Are you saying they will not give you rental income and your debt to income ratio is then too high without that income to qualify for more?

Here is Fannie:

Although the following refinance transactions do not meet the definition of continuity of obligation, the new refinance transaction will be eligible and not bound by the limited eligibility parameters described below if any of the following are applicable:

• The borrower on the new refinance transaction was added to title 24 months or more prior to the disbursement date of the new refinance transaction.
• The lender documents that the borrower acquired the property through an inheritance or was legally awarded the property (for example, divorce, separation, or dissolution of a domestic partnership). There is no minimum waiting period with regard to when the borrower acquired the property before completing a new refinance transaction.
• The borrower on the new refinance transaction has been added to title through a transfer from a trust, or a limited liability company (LLC), or partnership. The following requirements apply:
  • the borrower must have been a beneficiary/creator (trust) or a 25% or more owner of the LLC or partnership prior to the transfer, and
  • the transferring entity and/or the borrower has had a consecutive ownership (on title) for at least the most recent 6 months prior to disbursement of the new loan.

    Note: Transfer of ownership from a corporation to an individual does not meet the continuity of obligation requirement.

• The borrower has been on title for at least 12 months but is not obligated on the existing mortgage(s) that is being refinanced and the borrower meets at least one of the following requirements:
  • has been residing in the property for at least 12 months,
  • has paid the mortgage for at least 12 months, or
  • can demonstrate a relationship with the current obligor (for example, relative or domestic partner).

@Richard S. Can you give me a little more detail?

Have you been living in the property or no?

Have you personally paid the mortgage on the property the last twelve months?

I am assuming someone else had a mortgage on the property under their own name and not yours. Are you possibly related to that person?

@Michael Slot Based on that, I would say you have to call this an investment then. Which will limit the amount of money you can take out (really, restrict the loan to value you can go up to). What is your current loan amount and the current value of the property based on comparative analysis of closed comps?

The rates is pretty similar to market for owner occupied - so you will also lose on that a bit. 

@Jason Malabute

As one of the people above was saying, it depends on down payment and program. If you are doing a 30 Year - it will either be .85% or .80% if you put down more than 5%. 

Take the percentage above, multiply it by the BASE loan amount (the original loan amount without the up front MIP added back in) and divide by 12. In your example above - $3,051.50, divided by 12 = $254.29/month