All Forum Posts by: Jerry Padilla

@Ryan York

Seeing what you qualify first is the best way to start. FHA requires only 3.5% down as a primary residence.... But you still need some money down.

@Frederick Jackson

Where are you looking to purchase? A national lender may be the best way to go.

@Debra Muth

You can get financing for up to 10 properties. Financing a flip is what can be difficult, but you have the option of delayed financing, when it is in livable condition prior to 6 months.

Here is some info that you may find helpful.

You can borrow for up to 10 conventional mortgages, down to a price of 10k! You have the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;

• 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 5-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• Minimum credit score of 720

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to six (6) months PITI for the subject property are required.

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.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!!

http://www.biggerpockets.com/blogs/5110/blog_posts/42789-conventional-financibg-available-for-up-to-ten-properties

@Omar Givens

Buy and Hold can be a great way to make money short term as well. It depends on purchase price, rental income and where you buy. Clients of mine are making several hundreds per property in Cleveland OH after the mortgage is paid. Here in Rochester we are profiting monthly after our mortgages are paid as well. In higher cost area's monthly profits may not be as great, but appreciation is better in this situation many times.

@Anthony C

Welcome!

@Jack Oregon

You may be able to qualify, especially given all of your assets. Boston is a great location and you having a mortgage history already, you can have 75% of the rental income considered. Here is some more information that you may find beneficial,

You can borrow for up to 10 conventional mortgages. You have the option of a 15, 20 or 30 year term.

For A Fixed Rate Purchase, Investment properties, Mortgages 1-4;

• 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 5-10;

• A SFR requires a LTV of 75%
• A MFR requires a LTV of 70%
• Minimum credit score of 720

Here are some answers to FAQ as well;

1. For all 1- to 4-unit investment property transactions, cash reserves equal to six (6) months PITI for the subject property are required.

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.

2. Gift funds are not allowed on Investment property transactions.

3. Escrows for taxes and insurance are required unless otherwise approved by the underwriter.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics

5. Investment property transactions cannot close in trust.

6. Maximum 2% sellers concessions is allowed!!

http://www.biggerpockets.com/blogs/5110/blog_posts...

@Sidney S.

It all depends on the property manager. Many have the connections that you need, even if they don't.

@Scott Johnson

My best advice would be to .....

• Cash out refinance all of your properties and your girlfriend's property while it is still a primary residence. The interest paid is a tax write off and you can get a fixed rate. Then you can get an equity line of credit - on the properties..... which will be an adjustable rate, typically.
• This will give you a chunk of change for a down payment on your new property and to purchase more properties in the future.
• You can get up to 10 conventional mortgages in your name.

@Michael C.

It is interesting to see someone on the East Coast looking to invest in the West..... It always seems to be the opposite. Have you considered lower priced areas, that are closer to your home?

@NA Burkart

IF you pay cash for the property, you can immediately start the process for delayed financing. Here is some information on Delayed Financing. You can also Rate and term refinance a mortgage without a seasoning requirement.

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

http://www.biggerpockets.com/blogs/5110/blog_posts...