All Forum Posts by: Jerry Padilla

@Kathryn Baker

I agree with Craig, to use the lowest down payment. Interest rates are great now, and that way you get a head start on saving for the next property.

@Dustin Lee Cotliar

You will still have to have a down payment and closing costs. A SFR for an investment property is 15% down. You could go the route of a renovation loan - HomeStyle versus a construction loan.

Also this is a non-arms length transaction as you are buying from your parents. This can not be a bailout situation - at least for conventional. Which means - they can not be in foreclosure or stopped making payments and you save them from foreclosure. Not that this is the case, but I wanted you to be aware that the lender will look at the scenario closely.

@Wesley Whitehead

It is the intention to occupy the property for one year. That being said, if you are transferred 6 months after living in the property, they aren’t going to hold that against you. Your intention was to live in the property, and if you get orders to go somewhere else, that is out if your control.

@Jennifer Ryan

Are you planning on this property being in an LLC or your personal name?

If you are going to start with your personal name, this isn't necessary. You would just need to qualify based on your income, credit, DTI's and funds.

@Aaron Watkins

Let me know what Financing questions you have.

@Kundan Chand

Typically, it is one year from the purchase date or after a refinance.

@Jennifer Sanchez

Starting out with purchasing a primary home that is a multi-family residence is a great way to get started. You can typically end up living for free as the tenants rent is paying for the mortgage.

If you have little money to put down, FHA allows you to get into the property with only 3.5% down payment.

@Cin Khai

Cash out refinancing is typically done with 6 months seasoning, and based on appraised value.

For investment properties; A SFR has an LTV of 75% and a MFR has an LTV of 70%.

Prior to 6 months you will of had to pay cash initially for the purchase, and have a ceiling loan amount of your initial purchase.

@Nick Zabrecky

FHA 203k or HomeStyle Renovation Loans would possibly work for this purchase. My concern is the large garage. What is the square footage of the house itself? So is the garage no longer considered commercial space and just a huge garage?

@Chris Shepard

Are you looking to cash out on them? You can still cash out refinance them with an LTV of 75% on SFR and 70% on MFR. As long as the 10 are in your individual names, you can still refinance or cash out refinance them.