All Forum Posts by: Jerry Padilla

@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...

MORTGAGES STARTING AT $10,000!!!

Including, but not limited to the areas of New York City, Chicago, Dallas, Fort Worth, Los Angeles, Philadelphia, Cleveland, Toledo, Houston, Rochester, Orlando, Minneapolis, Indianapolis, San Francisco Bay Area, Denver, Charlotte, Portland, Pittsburgh, Seattle, San Antonio, Sacromento, Kansas City, Baltimore and Boston.

@Dinesh T.

Welcome to BiggerPockets! This is a great place to connect with and learn from others!

@Barbara G.

It is great that you are at least not under in the property. Typically for financing the appraiser will also give a rental amount, so the property doesn't necessarily have to be rented before you start the process.

@Sidney S.

This site is a great place to start building relationships, and create a team.

@Jay Hinrichs Has some great advice and experience. It seems that fix and flips are a very competitive market and your exit and entry point are going to change, but investors seem to flip all over the country. We have a cheaper market here in Rochester, but the lower price homes, have very small profit margins with homes under 100k. You may want to see if you can find wholesalers and investors in your market and attend some local meet ups and get ideas from other investors in your area. If you are going to look out of state, than you would need a property management company that could oversee everything.

@Wendell De Guzman and his entire team seem very knowledgeable and experienced in their local areas. They do property management and are agents. They have been posting on here for awhile and are able to provide references.

Loan limits increase from a single family to a four plex.

Minimum loan limits - You can go as low as $10,000 nationwide

Here is a link to maximum loan limits for VA, FHA and Fannie Mae and Freddie Mac..... The maximum loan limit is countywide.

https://entp.hud.gov/idapp/html/hicostlook.cfm?CFI...

Here is another link with a chart for 2015.

http://www.fhfa.gov/DataTools/Downloads/Documents/...

VA county loan limit:

• 2015 Loan Limits (Effective January 1, 2015). VA's 2015 Loan Limits are the same as the Federal Housing Finance Agency's limits. PLEASE NOTE: For purposes of determining the VA guaranty, lenders are instructed to reference only the One-Unit Limit column in the FHFA Table “Fannie Mae and Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar year 2015 and Originated after 10/1/2011 or before 7/1/2007”.

Here is a link to the VA site where they have the loan limits;

http://www.benefits.va.gov/homeloans/purchaseco_lo...

For 2015....

FHA Basic standard mortgage limits are:
Single - $271,050

Duplex - $347,000

Triplex - $419,425

Fourplex - $521,250

Fannie Mae/Freddie Mac standard mortgage limits are:

Single - $417,000

Duplex - $533,850

Triplex - $645,300

Fourplex - $801,950

FHA Basic High Cost area limits are:

Single - $625,500

Duplex - $800,775

Triplex - $967,950

Fourplex - $1,202,925

Fannie Mae/Freddie Mac High Cost are limits are the same as FHA for 2015:

National Housing Act provides mortgage limits for Hawaii up to 150% of the new ceilings for 2015:

FHA and Fannie Mae/Freddie Mac both are:

Single -  $938,520

Duplex - $1,201,150

Triplex - $1,451,925

Fourplex - $1,804,375

FOR VA FINANCING, SPECIFICALLY

• MAXIMUM NUMBER OF FINANCED PROPERTIES - 4
• GENEROUS DTI
• PRIMARY RESIDENCE ONLY FOR VA FINANCING
• MINIMUM CREDIT SCORE IS 600 FOR PURCHASES </= $417,000
• MINIMUM CREDIT SCORE IS 700 FOR PURCHASES > $417,000
• ABLE TO USE UP TO 4% SELLERS CONCESSIONS

I AM ALWAYS GLAD TO ANSWER FINANCING QUESTIONS.

l am a loan officer for a national lender. I am able to provide assistance in these locations of Fort Bragg, Fort Hood, Camp Pendleton, Fort Campbell, Fort Lewis, Fort Benning, Jacksonville, Norfolk, Honolulu, Mayport, Kitsnap, San Diego, Corpus Christi, Fort Worth, Coronado, Patuxent River, Fort Bliss, Fort Irwin and many other locations throughout the U.S.

• 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.
• 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.

@Daniel Sisto

@Christian Bors

BRRR Cash Out Financing....... Some Conventional Guidelines

• 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.
• 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.

@Charles Tucker

I do like purchasing immediate cash flow properties..... But inherited some terrible tenants as well. Meet them take a look at their lease agreement and ask for verification that rent is paid on time. If the prices are great and the rent is great, hopefully you can jump on the deal. Have you been pre-qualified? 

@Powell Chee

From the lending aspect you are required to have cash reserves for investment property. Here is some info on it. 

Acceptable Sources of Reserves

• Checking or savings accounts
• Investments in stocks, bonds, mutual funds, certificates of deposit, money markets funds and

  trust accounts

• The amount vested in retirement savings accounts
• Cash value of a vested life insurance policy

  Certain assets must be “discounted” when used for reserves. Terms and conditions of liquidation may be required depending on the asset used for reserves.

  Assets Requiring Liquidation
  The following may be counted as cash assets at 100% of verified liquidated amounts:

  • Cash value of life insurance
  • Publically traded stocks
  • Bonds
  • Mutual Funds
  • U.S. Government Securities
  • Savings Bonds
  • Retirement Funds

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.