All Forum Posts by: Jerry Padilla

@Jessica Zhang

@Anatole Doak

You can cash out refinance prior to 6 months with delayed financing if you paid cash for the property. 

If you used a hard money lender you could do a rate and term refinance without any seasoning period as well. 

There are some limitations with delayed financing. 

• The new loan amount can not be more than the actual documented amount of the borrower's initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV as well).

@Yia Vang

I would recommend looking educating yourself on both options and then deciding what works best for you to start out.

With Conventional financing you can obtain long term financing out 30 years. Typically, with commercial financing, it is amortized over 20 -30 years, but then has a balloon payment due in 5 -10 years. So you will either be refinancing or having to pay the balloon. I am glad to send you info on residential financing. 

@Anant Radadia

I am glad to answer any questions on financing that you have. Getting pre-approved for a mortgage is one of the first steps after you figure out what route of investing you want to go. (A property that needs renovation, or one in livable condition) It looks like you have some great local resources that have also responded as well. 

@Shannon Threlkeld

You only need a 2 year history for Freddie Macs guideline, not Fannie Mae’s.

If your current lender can’t follow Fannie Maes guidelines directly than it will be an overlay of your lender to follow the strictor of the 2 sets of conventional guidelines.

You will be able to use tax returns if you have owned them long enough. If not, lease agreements will be used at 75%.

@Scott Carlin

3. - Conforming is Conventional

I am glad to provide you with info on financing when you decide which route you want to go. There is also the availability of a renovation loan as well.

*UNLIMITED AMOUNT OF FINANCED PROPERTIES – MORE THAN 10 FINANCED PROPERTIES ALLOWED. (ONLY 5 LOANS ALLOWED UNDER THIS PROGRAM)

*MINIMUM $100K LOAN AMOUNT – NO EXCEPTIONS

Purchase/Rate & Term Criteria – LTV

1-4 Unit Residential Property

• 85% LTV
  • 660 Credit Score Required
  • $1,500,000 max loan amount
  • 9 months Reserve Requirement
  • NO Mortgage Insurance
• 80% LTV
  • 620 Credit Score Required
  • $1,500,000 max loan amount
  • 6 months Reserve Requirement
• 75% LTV
  • 620 Credit Score Required
  • $1,750,000 max loan amount
  • 6 months Reserve Requirement
• 70% LTV
  • 620 Credit Score Required
  • $2,000,000 max loan amount
  • 6 months Reserve Requirement

Cash Out Refinance –

1-4 Unit Residential Property

• 80% LTV
  • 640 Credit Score Required
  • $1,000,000 max loan amount
  • 6 months Reserve Requirement
  • Maximum Cash Back $350k

*6 months reserves required for all additional properties.

*Up to 6% Seller Contributions Allowed

*ESCROW WAVERS NOT ALLOWED

*Non Traditional Credit Not Permitted

*Declining Markets noted by appraiser - LTV will be reduced by 5%

* New York and Maine now available, Most States This Program is Available!

* Massachusetts not allowed

Properties Allowed:

Single Family (Detached, Semi Detached, Attached)

1-4 units

PUD (Detached, Attached)

Warrantable Condominium(Detached, Attached)

Non-Warrantable Condominiums Attached/Detached) including Condo-tels.

(Subject to Prime Lending Approval)

Some of the top rental markets that we lend in, but are not limited too are;

Colorado Springs, CO, Ogden, UT, Lakeland, FL, Stockton, CA, Fort Worth, TX, Nashville, TN, Jacksonville, FL, Orlando, FL, Charlotte, NC, Fresno, CA, Indianapolis, IN, Atlanta, GA, Sacremento, CA, Grand Rapids, MO, McAllen, TX, Greenville, SC, Tucson, AZ, Omaha, NE, Minneapolis - St Paul, MN, Raleigh, NC, San Antonio, TX, Winston Salem, NC, Oklahoma City, OK, Columbus, OH, Minneapolis, MN, San Antonio, TX, Charlotte, NC, Arlington, TX, Reno, NV, Richmond, VA, Pheonix, AZ, Durham, NC, Las Vegas, NV, Nashville, TN, Boise, ID, Seattle, WA, Cleveland, OH, Tampa, FL, St Petersburg, FL, Portland, OR, Corpus Christi, TX, San Diego, CA, Cincinnati, OH, Wichita, KA, Baton Rouge, LA, Virginia Beach, VA, Los Angeles, CA, Louisville, KY, Madison, WC, Austin, TX

@Louis Grigoletti

Sorry for the confusing response!

Gift funds are technically allowed and will approve with good credit - the higher scores you first mentioned.

With a lower credit score of 640 - you will have to bring some funds to the table - down payment to get it to approve in the system. You can still ask the seller to pay money towards your closing costs or have a family member gift them to you.

@Chris Mason

Has the best response. Your chance of being caught now after this thread is close to 100% if there is any question. The proof is in this thread. Don’t risk it.

PRIMARY HOME PORTFOLIO LOAN / LOW DOWN PAYMENT PROGRAM

Minimum Loan Amount:

Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming - Conforming Limits + $1

Maine & New York - High Balance Limits + $25k

Massachusetts is the only state not allowed with this program

Look Up Conforming and High Balance Loan Limits for your area here;

Conforming Loan Lookup

No Escrow Wavers Allowed!

Purchase (No Cash Out) 1-4 Unit Primary Home, 1 Unit Second Home

• 95% LTV -
  • Up to $2 million
  • Minimum credit score 740
  • NO Mortgage Insurance
  • 9 months reserves
  • 43% Max DTI'S
  • Up to 3% sellers concessions allowed
• 90% LTV -
  • Up to $3 million
  • Minimum credit score 700
  • NO Mortgage Insruance
  • 9 months reserves
  • 45% DTI'S
  • Up to 6% sellers concessions allowed

Cash Out Financing - Primary Home 1-4 Unit Primary Home, 1 Unit Second Home

• 85% LTV -
  • Up to $1.5 million
  • Minimum credit score 700
  • NO Mortgage Insurance
  • 9 months reserves
  • 45% DTI'S
  • Maximum Cash Out of $500,000
  • 2-4 Unit Cash Out not allowed in Texas

Financing Transaction Requirements:

• Gift funds not allowed on LTV's greater than 90%
• No derogatory events allowed in the past 4 years - including No Foreclosure, Short Sale, Deed In Lieu of Foreclosure, Chapter 7 or 13 bankruptcies
• Unlimited Primary Residence Homes, Maximum of 5 Portfolio Loans with this program, Maximum of 10 Financed Properties with Second Home, maximum of $3 million in unpaid principle
• Properties listed for sale must be taken off of the market prior to application
• ***** First Time Home Buyer - must meet payment shock guideline - *****
   First-time homebuyers may not exceed a 250% Payment Shock ratio
  Payment Shock Ratio is the percentage ratio of the borrower’s new Total Monthly Housing Payment over the borrower’s prior Total Monthly Housing Payment.
   Example: For a borrower with a proposed Total Monthly Housing Payment of $5,000 and an existing Total Monthly Housing Payment of $3,000, such borrower’s Payment Shock Ratio is 166.7% ($5,000 divided by $3,000).
   Note: If a borrower has been living rent free or owns their current home free and clear, no payment shock calculation is required.
•  ***** Living Rent Free *****
  • Less than 38% DTI
  • Additional 6 months of reserves required
  • 120% residual income required
• Minimal Residual Income Requirements - must be met and depend on loan amount and household size.

Cash Out Financing -

• 6 Months seasoning required
• Properties must not have been on the market for the past 6 months

Delayed Financing -

• 12 months or less of seasoning
• Property must not have been listed for sale

Some of the highest priced cities/counties that we lend in are (but not limited too);

Atherton, Calif. - San Mateo, Cherry Hills Village, Colo. - Arapahoe, Scarsdale, N.Y. - Westchester, Los Altos Hills, Calif. - Santa Clara, Short Hills, N.J. - Essex, Hillsborough, Calif. - San Mateo, Old Greenwich, Conn. - Fairfield, Bronxville, N.Y. - Westchester, Highland Park, Texas - Dallas, Darien, Conn. - Fairfield, West University Place, Texas - Harris, The Village of Indian Hill, Ohio - Hamilton, Winnetka, Ill. - Cook, Great Falls, Va. - Fairfax, Glencoe, Ill. - Cook, Kentfield, Calif. - Marin, University Park, Texas - Dallas, Paradise Valley, Ariz. - Maricopa, Westport, Conn. - Fairfield, McLean, Va. - Fairfax, Piedmont, Calif. - Alameda, Greenville, N.Y. - Westchester, Upper Saddle River, N.J. - Bergen, Larchmont, N.Y. - Westchester, Travilah, Md. - Montgomery, Riverside, Conn. - Fairfield, Palm Beach, Fla. - Palm Beach, Los Altos, Calif. - Santa Clara, Ladue, Mo. - St. Louis, Hinsdale, Ill. - Cook, Montecito, Calif. - Santa Barbara, Lake Forest, Ill. - Lake, Tiburon, Calif. - Marin, Rye, N.Y. - Westchester, Upper Montclair, N.J. - Essex, Orinda, Calif. - Contra Costa, Rumson, N.J. - Monmouth, Wolf Trap, Va. - Fairfax, Southlake, Texas - Denton, Inverness, Ill. - Cook, North Caldwell, N.J. - Essex, Pepper Pike, Ohio - Cuyahoga, Bellaire, Texas - Harris, Indian River Shores, Fla. - Indian River, Potomac, Md. - Montgomery, Palos Verdes Estates, Calif. - Los Angeles, Alamo, Calif. - Contra Costa, Town and Country, Mo. - St. Louis, Woodbury, N.Y.- Nassau, Malibu, Calif. - Los Angeles, New Albany, Ohio -- Franklin, Mill Valley, Calif. - Marin, Orono, Minn. - Hennepin, East Hills, N.Y. - Nassau, Oak Brook, Ill. - Cook, Franklin Lakes, N.J. - Bergen, Glen Ridge, N.J. - Essex, La Cañada Flintridge, Calif. - Los Angeles, Long Grove, Ill. - Lake, Lawrence, N.Y. - Nassau, Saratoga, Calif. - Santa Clara, Blackhawk, Calif. - Contra Costa, Chatham, N.J. - Morris, Old Tappan, N.J. - Bergen, Leawood, Kan. - Johnson, Irvington, N.Y. - Westchester, Briarcliff Manor, N.Y. - Westchester, Pelham, N.Y. - Westchester, Chevy Chase, Md. - Montgomery, Manhattan Beach, Calif. - Los Angeles, Summit, N.J. - Union, Darnestown, Md. - Montgomery, Ridgewood, N.J. - Bergen, Bethesda, Md. - Montgomery, Key Biscayne, Fla. - Miami-Dade, Pinecrest, Fla. - Miami-Dade, Coto de Caza, Calif. - Orange, Woodcliff Lake, N.J. - Bergen, Hawthorn Woods, Ill. - Lake, Colleyville, Texas - Tarrant, Wilmette, Ill. - Cook, Tenafly, N.J. - Bergen, Greenwood Village, Colo. - Arapahoe, San Marino, Calif. - Los Angeles, Garden City, N.Y. - Nassau, Menlo Park, Calif. - San Mateo, Glen Rock, N.J. - Bergen, Lafayette, Calif. - Contra Costa, Greenwich, Conn. - Fairfield, Burr Ridge, Ill. - Cook, Little Silver, N.J. - Monmouth, Harrison, N.Y. - Westchester, Bernardsville, N.J. - Somerset, Princeton, N.J. - Mercer, Clarendon Hills, Ill. - DuPage, South Kensington, Md. - Montgomery, Westfield, N.J. - Union, Highland Park, Ill. - Lake

Recent changes to CASH OUT Financing;

- Conforming limits increased across the board everywhere! Here is a link to see the max for your area!

Look Up Conforming Limits For Your Area!

BRRR / BRRRR....... Buy Rent Rehab Refinance..........& Repeat

CASH OUT FINANCING

A cash out refinance is a refinance of your property that allows you to pull equity out of a property. The mortgage can either be paid off free and clear or can have a low enough balance on the current mortgage versus the value, to make it worth pulling out the equity in the property. Cash out refinances are available on primary, second homes and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgaged properties #1-10. Please see delayed financing for less than 6 months after closing.
• On a primary residence you can pull out up to 80% LTV on a SFR and up to 75% LTV on 2-4 unit multi-families.
• On an investment property; A SFR if you have #1-10 mortgaged properties, you can pull out up to 75% of the equity and on 2-4 units is up to 70% equity.
• On an investment property; If you have #7-10 mortgaged properties, including subject you are required to have a credit score of 720, and are subject to a minimum loan amount of $50k!
• PROPERTIES LISTED FOR SALE - Must be taken off of the market prior to disbursement date of the new mortgage.

Cash Reserves Required For Other Properties Owned by Investor, if doing a cash out on investment property;

Cash Reserve Requirements;

6 months Freddie Mac's Guide to Refinancing, including Cash Out.

Fannie Mae's Guideline to Cash Out Financing.

Fannie Mae Guideline for Cash Out, Mortgaged Property 5-10.

STATES WE LEND IN:

Alabama, Alaska, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming