All Forum Posts by: Jerry Padilla

@Shaun Weekes

Thank you for the mention! Absolutely on your suggestions on how to structure this deal and explain the situation. 

@Marni L.

There maybe a portfolio option for you that I am aware of. Since you are above conforming limits, with this option, you are required to have a 5% down payment. So you are close to having that. There is also a 9 month reserve requirement. This can be stocks, bonds, retirement funds, cash value whole life insurance. You can ask for up to 3% sellers concessions. 

The other option is conventional and a second mortgage. This would be 95% LTV. With a 6 month reserve requirement. You can ask for up to 3% sellers concessions with this route.

Can you save up some more funds prior to closing? Also you can ask the seller to pay up to 3% towards closing costs and prepaids to help With closing costs. Maybe you could increase the purchase price slightly to compensate for this, difference? Both of these options are a 43 back end ratio. 

Also, when you go to apply for the mortgage there will be an appraisal done so no need to pay that now. 

@Kyle Phakkhonkham

Yes. I house hacked a duplex, and used an FHA mortgage.

@Tyler Winchell

That would be a cash out refinance. On an investment property you would see an LTV of 75% of a SFR and an LTV of 70% on a MFR. You can cash out at 6 months with conventional at 6 months.

@Chris Lord

This is a lender overlay, Fannie Mae only requires 6 months seasoning, and the process can be started prior to the 6 month period. You can cash out at this 6 month time on appraised value. 

@Michael Almeida

Did you pay cash for the property?

If so, you can cash out based on appraised value with conventional up to a max of your initial investment. Purchase plus closing costs.

You can cash out refinance based on appraised value without this ceiling limit at 6 months or if you used financing initially with conventional. A primary home SFR you can get an LTV of 75%.

@Charlie John

You can do that as long as the second mortgage company is willing to subordinate. You would significantly lower your interest rate with the first mortgage and the refinance would be well worth it.

@Jonathan Luna

There are VA Renovation Loans that cover 100% of the purchase and rehab, so refinancing wouldn't be necessary unless there is enough value to then cash out with VA.

@Erin McLellan-Dawe

I would recommend exactly as Kerry stated. Challenge the Appraisal.

@Jason Rosenblum

How many units does the property have? Is this commercial or residential property?

Typically, rates are set and based on factors like purchase price, credit score, LTV, the property type. An underwriter doesn't determine the rate.

@Cesar Perini

A modular home is treated as a regular single family residence.

A manufactured home - mobile home - as mentioned is what can be difficult to find financing for.