All Forum Posts by: Jeff Dulla

@Gabe G. Directly from Allregs  Fannie Mae's guides:

If the mortgage loan being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of other properties that the borrower will have financed. If the mortgage is secured by a second home or an investment property, the multiple financed properties policy applies. The maximum number of financed properties that are permitted is based on the underwriting method, as described later in this topic.

@Nicholas Zornek In terms of complication - a single family home is probably easier. But it's hard to just paint the situation with a wide brush. It all depends. 

You have many options for low down payment on a duplex (2-Unit) these days between FHA, Home Ready and Home Possible (if you or the area you are trying to buy in qualify). You also have the potential of using some rental income from the property to offset your expenses/debt to income ratio. So in some ways it may be easier to qualify.

SFH financing has 1% down and 3% options for first time home buyers. So I would think from a down payment perspective, that is the "easier" part of financing for SFH. A duplex is really not much higher though using those same programs. So long story short, it shouldn't be that much more difficult. Analyzing the property and whether or not it is a solid investment is another question.

@Ian Whiteman That seems a little high. I can use the info above and give you a quote if you would like. Just shoot me a PM.

Thanks 

@Jonathan Garrett Do you have assets? If not, you said you are going to live in this place right? You could do a Non-Prime, Non-QM type loan that approves you based on your business bank statements/cash flow in. 

You should be able to be on the loan with a co-signer. The co-signer just needs to be able to make enough to handle your loss while qualifying. 

@Jorge Astudillo@Jon Holdman Agree with Jon that 30 Year is heavy interest until you get down to either a 20 Year amortization or 15 year. But that proportion does not seem right. At most, on a 30 year, the ratio should be a little better than 70% interest, 30% principal. Which would be $500 or so towards principal on your scenario above if that is P&I. Even if that payment is heavy taxes and insurance, $29 is way low. 

@Jorge Astudillo Definitely need more info. How old is his loan? Fixed rate or ARM? When did get the loan? What is impacting his credit (obviously these are personal questions and don't expect you to respond on here)?

If he hasn't been notified that his escrow has changed or something like that, perhaps he is in an interest only loan. Or something similar. If the score is declining rapidly, perhaps the bank has notified him that the payment is going up for whatever reason and he keeps paying a lower amount. Someone should review a recent mortgage statement from the servicing bank and compare it to what he is paying. That would be a good start. 

@Ryan Moore I think a prequal would help but really it comes down to the lender. Do you have someone you trust? Do you have someone that can consult through the process? 

My best investment clients are ones that put their trust into me (not blindly) and for that I do a lot of work up front for them. There is a level of synergy that then exists and a mutual level of trust. I am a part of the whole search, vetting of the property, the offer, etc. 

I would find someone you trust and see if you can get as much of this vetted out as possible. And then keep that partner throughout the process. 

Good luck!

@Ryan Moore What are they saying to you? Are they literally not telling you anything or are they saying they don't know and it depends on the property?

Truth be told - you are really qualifying most times based on monthly debt to income. So rather than be approved for a set loan amount, you are really approved for a set monthly payment that includes taxes, insurance, etc. To exacerbate the problem with that equation further - you get credit for rent that will offset some of that debt. 

Long story short, the full monthly payment, with taxes and insurance, net of the rent, is going to change from place to place. They should still be able to give you a ballpark but a good lender will help you vet the properties in advance as you are looking to make sure they are a fit before you get under contract. 

@Tom J. In the sense that it opens up the most banking options to you and therefore the best access to a wide array or rates, yes. 

@Tom J. To piggyback off the other post, it depends and there are also different kinds of asset based lending options. 

I know of a couple banks that do what is called asset depletion. Most banks allow for asset depletion under normal fannie/freddie guides but the equation they use to calculate the income based on your assets is extremely conservative. The places that are known for "lending off your assets", will take your asset base and dived by 60 (rather than the amortization of the loan - 360, 180, etc). Therefore your assets earn you a higher qualifying income. These loans are priced near market rates. 

You also have Non-Prime loans coming back out that will lend based on your business asset accounts and the "cash flow" into those accounts. These loans are typically priced at much higher rates. 

Lastly, if you truly have large asset accounts that you can move to a retail bank, you are more than likely going to come across some banks that will do aggressive financing as long as you move a lot of money over to their bank. 

Unless you have a large payment on a primary residence, a lot of these investment properties could potentially cover themselves - meaning you don't have to have a really high reported income to qualify. You will get credit for fair market rent when the appraisal is done.