All Forum Posts by: Jerry Padilla

@Shepard Solomon

If you choose not to get home owners insurance, and the house burns to the ground...... You are out your entire investment. Personal Name versus LLC is a huge topic discussion. Are you buying cash or with financing? There is more risk with your personal name - which is why I carry an umbrella policy. LLC financing terms are typically shorter with higher interest rates. Most mortgage companies will require you to get home owners insurance.

Here is a link with a list of the conforming loan limits for 2017

PDF List of Counties With Conforming Limits For 2017

Here is the site to look up FHA and Fannie Mae/Freddie Mac Loan Limits.

Look Up For Fannie Mae/Freddie Mac Limits For 2017

You can borrow for up to 10 conventional mortgages, down to a price of 10k, and up to confirming limits in your county. You have the option of a 15, 20 or 30 year term.

You can have an unlimited amount of mortgages and still obtain Primary Residence Financing. You are limited to 6 financed properties for investment properties with high balance financing ( the point between the standard ceiling limit and your area's ceiling limit - if above the standard )

Standard Conforming limits are below;

1 unit - $424,100

2 unit- $543,000

3 unit - $656,350

4 unit - $815,650

Maximum Conforming limits are below (If Your Area Qualifies, Please Use the Look Up Link Above to see where your location falls);

1 unit - $636,150

2 unit - $814,500

3 unit - $984,525

4 unit - $1,223,475

Maximum Conforming limits are below (If Your Area Qualifies, For Specialty Financing);

Honolulu;                  Kalawao, Maui;        Kauai;

1 unit - $721,150      1 unit - $657,800     1 unit - $713,000

2 unit - $723,050      2 unit - $842,100     2 unit - $912,750

3 unit - $1,115,800   3 unit - $1,017,900  3 unit - $1,103,350

4 unit - $1,386,650   4 unit - $1,265,000  4 unit - $1,371,150

Anything above this limit, but below your specific counties conforming limit is considered high balance financing. There are different guidelines for both standard conforming limits and for high balance financing. Jumbo loans are for primary residence only and above conforming limits.

Standard Conforming Limit Financing

For A Fixed Rate Purchase, Primary properties, Mortgages 1-6;

• A SFR requires a LTV of 97% (first time buyer only, 95% if not your first purchase)
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75% (possibly 80% with Freddie Mac)
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 1-6;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment properties, Mortgages 7-10;

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 720

High Balance Limit Financing (Within Conforming limit for individual county specific, & above standard conforming limit)

For A Fixed Rate Purchase, Primary properties, Mortgages 1-6;

• A SFR requires a LTV of 95%
• A Duplex requires a LTV of 85%
• A Triplex & Fourplex requires a LTV of 75%
• A minimum credit score of 620

For A Fixed Rate Purchase, Investment Properties, a maximum of 6 financed properties ONLY ALLOWED. You can not do a high balance loan on an investment property if you have greater than 6 mortgaged properties, including subject property!

• A SFR requires a LTV of 85%
• A MFR requires a LTV of 75%
• A minimum credit score of 620

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions.

Cash Reserves Required For Other Properties Owned by Investor;

Cash Reserve Requirements;

6 months Fannie Mae's Requirement for 1-4 Mortgaged Properties.

Fannie Mae's Requirements for 5-10 Mortgaged Investment Properties

Freddie Mac Requirements for 1-6 Mortgaged Properties.

These California cities are in the High Cost areas for 2015;

Los Angeles, Anaheim, Long Beach, San Jose, Sunnyvale, Santa Clara, San Francisco, Oakland, Hayward, Santa Barbara, Santa Maria, Santa Cruz, Watsonville

The CA counties are included in the high cost areas;

Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

These Colorado cities are in the High Cost areas for 2015;

Edwards, Glenwood Springs, Steamboat Springs, Breckinridge

The CO counties are included in the high cost areas;

Eagle, Garfield, Pitkin, Routt, San Miguel

Washington and Arlington - District of Columbia

These Hawaii cities are in the High Cost areas for 2015;

Kahului, Wailuku, Lahaina

The HI counties are included in the high cost areas;

Honolulu, Maui, Kalawao, Kauai

These Idaho cities are in the High Cost areas for 2015; Bailey, Hailey

The ID counties are included in the high cost areas; Blaine, Camas, Lincoln, Teton

The NY NJ PA counties are included in the high cost areas;

Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

These New York, New Jersey, Pennsylvania cities are in the High Cost areas for 2015;

Jersey City, Newark, New York

Elizabeth City in NC with counties of Camden, Pasquotank, Perquimans

In DC, VA, MD, WV - Washington, Arlington, and Alexandria

In MA - Vineyard Haven - Dukes and Nantucket

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2017. VA is the same as FHA for 2017

FHA and VA are owner occupied and have to be mortgage 1-4. Conventional can be both owner occupied or investment with up to 10 mortgages.

Feel free to email me or call me with any questions or financing needs!

@Broaderick Brown 

Congrats! I am glad to answer any financing questions that you have on financing. This site is great to build up a network of clients. 

@Peter Mckernan What is your opinion of the market in Orange County? Time to sell? 

@Andrew Bergen speak with @Kevin Fox he has made the numbers work in San Diego in the past! I have seen them myself. 

@Drew Slew

If you purchased close to home, you could have closer management of the properties and manage them yourself, saving you fees. 

@Jamie Malsberger

It won't work. It needs to be purchased as an investment property........Which is really what your intentions look like. If it is a SFR you would need 15% down and a MFR requires 25% down.

@Dawn Brenengen 

BP is the best thing that happened to my career! It can be the same for an agent on here that stays active, participates and becomes the expert in their area! Even when I am too busy to be on here, investors still find me...... A benefit of the Pro Account and the Marketplace!

@Marc Belisle

If you are thinking of keeping the property, I would refinance while it is still your primary residence and you can get an LTV of 95% still. If it becomes an investment property a lower LTV will be required. Do you think the value will recover? If so, I think it would be worth the wait.

@Steve Karpinski

 Are you planning on moving into the other unit? Why not use conventional financing? Typically, with seller financing the interest rates are higher with shorter terms from my experience. You would first want to figure out rental amounts, settle on a purchase price, get it inspected, negotiate again possibly, get it appraised, final walk through and close.