All Forum Posts by: Jerry Padilla

@Benjamin Cowles

I would prefer to rent or sell. I don't know all the aspects of the Dodd Frank act or laws regarding seller financing. 

If I were to do seller financing, I would only be profiting the interest rate. If I were to keep the property and rent out, my profit would be much greater with the rental income versus the interest rate. Obviously, this all depends on rental income, house prices and interest rates. Here in Rochester, home prices are cheap, rents are decent, so the interest rate versus the profit from rental income is greater. 

@Matt Motil Thank you for the mention! 

@Gary Kuang

@Joshua D. great suggestions

Financing is available with conventional as low as $10k

@Derek Gorham Absolutely!

@Joy W. We only lend to individual names. We are a conventional lender going out to 30 year terms and fixed rates. Yes, I lend throughout the entire state of Maryland. 

@Brett St Clair My cell is 585-204-6923 and my email is [email protected] I am always glad to assist. Call me anytime.

@Marc Oister I absolutely lend in your area and I am glad to assist. My cell is 585-204-6923 and my email is [email protected]

Anyone is welcome to apply directly on my website (located in my signature) to get the process started and I am glad to assist. Thank you everyone for all of the interest ;-)

@Chip Chronister

In many situations 6 months reserves is required. 

• The subject property is always 6 months
• 2-4 unit investment properties are always 6 months
• If you have 5-10 mortgaged investment properties, the required cash reserves is always 6 months on all properties.

• If you have 1-4 mortgaged properties, including the subject property, than a SFR only require 2 months reserves. Once you get up to 5 mortgaged properties it will be 6 months then.

1. If you have 1-4 mortgaged properties, including subject, than you can do as little as 15% down on a 1 unit investment only, but will be required to pay mortgage insurance, with less than 20% down.

@Faisal Sami

Has some good suggestions with low priced properties, as long as you have a great team in place. 

@Crystal H. Hello. 

@Tim Lindstrom Thank you for the mention! 

@Matt Motil Thank you for the mention! 

Mortgages can go as low as $10k. 

Self wmployed history would have to be a min of 18 months and possibly require a two year history. They need to prove that they can pay a mortgage with consistent income. 

Credit score of 600 is required, with an FHA, which sounds like the route they will need to go.

FHA requires 3.5% down which can be gifted money from a relative or on their own, but not borrowed.

They can ask the seller (you) to give them 6% towards closing costs. It can not be used towards the required down payment. 

As you mentioned the house would have to appraise for the selling value.

I agree there is no point with rent to own, as I prefer to keep all the profit if the mortgage is in my name. We also have tenants that have interest in purchasing one of our rentals. But we are not willing to do rent to own, either. 

I am always glad to answer any questions. 

@Jerry W. Unfortunately we don't lend in Wyoming, Montana, and Alaska. We just added SC, so hopefully in the future. ;-) 

These are our guidelines, but we do follow very closely to Fannie Mae and Freddie Mac guidelines. We have very little overlay.

@Douglas Skipworth

Thank you! I greatly appreciate the business that B.P. Provides. I hope to get on here more very soon, as soon as I grow my team...... Hopefully in the next month or two. 

At MB Financial we are a National Lender that goes above and beyond for our clients and I cater to assisting investors with all of their financing needs, including primary residence financing:

A credit tool to assist with improving your (or your clients) credit score to qualify for financing (Free of Charge)

Investor loans - Financing for up to 10 investment properties, with Conventional Financing, backed by Fannie Mae, or Freddie Mac
Conventional or Refinance

Cash Out Financing on the first four investment property's

Delayed financing with up to ten mortgages

Credit scores down to 600 on FHA/VA/USDA loans - primary residence only
National lender!

Streamline refinance programs for FHA/VA/Conventional - Save money with less documentation

Low rates & Low closing costs

I am available extended hours
Opportunity to increase your business to have more capital available for purchasing and rehabbing

Lender credit available for purchases

Automated approval system

BRRR....... Buy Rent Rehab Refinance

CASH OUT FINANCING

A cash out refinance is exactly what it sounds like. It is when you refinance your property and pull money out of a property. The mortgage can either be paid off free and clear or can have enough equity in the property to make it worth refinancing and pulling money out. Cash out refinances are available on primary and investment properties.

• The typical cash out financing is done after 6 months of owning the property, based on ARV and available for mortgages #1-4. 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 #1-4 mortgages you can pull out up to 75% of the equity and a duplex is up to 70% equity.
• On an investment property; If you have #5-10 mortgages you can only pull out money in the first 6 months (delayed financing) that you own the property, if you didn't originally get a mortgage on the property. As long as the value is there (on a SFR 70% LTV and duplex 65% LTV) You can take out up to the purchase price plus closing costs on the property.
• RATE and TERM REFINANCE - PROPERTY
• 5-10 If you are willing to pay the fees and go through two closings.... You can take out private or hard money on free and clear properties #5-10 and do a rate and term refinance with conventional to pull money out on them.
• PROPERTIES LISTED FOR SALE
  For a rate and term refinance transaction, the borrower must evidence that the listing has been cancelled, and must not have been listed for sale as of the date of the application.
  For a cash-out transaction, the borrower must provide evidence that the listing was cancelled at least six months prior to the date of application.
• Cash Reserves Required For Other Properties Owned by Investor;
  
  • If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second home
  • If the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.

DELAYED FINANCING EXCEPTION

Delayed Financing Exception

A cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters:

• The new loan amount is not 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).

1. 1. SFR mortgage #1-4 - 75% LTV
2. 2. Duplex mortgage #1-4 70% LTV
3. 1. SFR mortgage #5-10 -70% LTV
4. 2. Duplex mortgage #5-10 - 65% LTV

• The purchase transaction was an arm’s length transaction
• The purchase transaction is documented by the HUD-1, which confirms that no mortgage financing was used to obtain the subject property. The preliminary title search or report must also confirm no liens on the subject property.
• The source of funds for the purchase transaction can be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

  Funds received as gifts and used to purchase the property may not be reimbursed with proceeds of the new mortgage loan. Funds of gifts are not allowed with investment purchases.

• All other cash-out refinance eligibility requirements are met and cash-out pricing is applied. This is allowed on primary residences, second homes and investment properties per cash-out guidelines.
  • Ineligible Transactions
    The following transaction types are not eligible as cash-out refinances:
    
    • The subject property was purchased by the borrower within the six months preceding the application for new financing except if delayed financing guidelines are met.
    • Investor and second home borrowers with 5-10 properties are ineligible for cash-out refinance transactions unless all of the delayed financing guidelines are met.
    • The subject property is currently listed for sale
    • The existing mortgage is a “restructured mortgage”
    • Transactions in which a portion of the proceeds of the refinance is used to pay off the outstanding balance on an installment land contract regardless of the date the installment land
      contract was executed.
    • The new loan amount includes the financing of real estate taxes that are more than 60 days delinquent and an escrow account is not established.

  This information is accurate as of the time of posting. Please also verify the accuracy of this information at the time you are considering these options as guidelines change.
  https://www.fanniemae.com/content/guide/selling/b2...

Rate & Term Refinance

Freddie Mac and Fannie Mae are both conventional lenders. They each have their own set of guidelines to be followed. There are investor friendly lenders that are able to specifically follow just one of the guidelines below. Below are the required LTV for Rate and Term Refinances.

THESE ARE FOR MORTGAGE 1-4;

For Freddie Mac, a Rate and Term Refinance for a Primary Residence;

95% for 1 unit

80% LTV for 2-4 units

For Fannie Mae, a Rate and Term Refinance for a Primary Residence;

1 unit - 95%

2 unit - 85%

3-4 unit is 75%

For Freddie Mac, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1-4 Units

5-10 Mortgages;

For Fannie Mae, a Rate and Term Refinance for a Investment Residence;

75% for 1 Units

70% for 2-4 Units

FHA Rate and Term Refinance -

Maximum LTV is 97.75%

FHA Cash Out Refinance -

Maximum LTV is 85% of appraised value if property has been owned 12 months or greater, and if less than 12 months from purchase than the lesser of purchase price or appraised value is used.

Please also see the qualifications for obtaining a second FHA Mortgage.

https://www.biggerpockets.com/blogs/5110/blog_post...

Some areas we lend in, but are not limited to are; 

Columbia, Orangeburg, Newberry, Little Rock, McAllen, Edinburg, New Haven, Milford, Bakersfield, Madison, Janesville, Beloit,
Oxnard, Thousand Oaks, Ventura, Allentown, Bethlehem, Easton, Baton Rouge, Modesto, Merced, Syracuse, Auburn, South Bend, Elkhart, Mishawaka, Boise City, Mountain Home, Ontario, Lexington, Fayette, Richmond, Frankfort, Stockton, Lodi, Akron, Charleston, North Charleston, Springfield, Greenfield Town, Huntsville, Decatur, Albertville, Spokane Valley, Coeur d'Alene, Wichita, Arkansas City, Winfield, Jackson, Vicksburg, Brookhaven, Colorado Springs, Youngstown-Warren, Toledo, Port Clinton, Winston Salem, Portland, Lewiston, South Portland, Fort Wayne, Huntington, Auburn, Lakeland, Winter Haven, Ogden, Clearfield, Lafayette, Opelousas, Morgan City

@Ryan Provost Thank you! I am always glad to help. 

@Steven Gesis

Thank you for your response! Yes, 15% for a SFR (PMI is chsrged in down payment less than 20%) we lend down to $10k on 1-4 unit properties. Rates fluctuate daily, and are variable depending on many factors, so I typically don't like to post rates. We do have some of the best rates and products for investors. We don't typically charge upfront points, but for small loan amounts, there may be an upfront fee. It is not determined by myself, but our automated system and usually seen with loan amounts under $20-$30k. But, Most other lenders won't even touch these small loan amounts.