All Forum Posts by: Jerry Padilla

@Account Closed 

Your friend can get a loan while living abroad as a U.S. Citizen with established credit here. He just needs a U.S. Address, not a P.O. box. 

@Lisa Carter

A couple of issues here. I don't personally think your contract will hold up...... They are on title and on the loan...... They are part owner as well. I don't think there is any way around it. 

Also, as far as FHA and a cosigner....... Purchasing a SFR you can have a non-owner occupied co-signer. Purchasing a MFR is a new ball game and any co-signer is required to live in the property as well - even family.

With you not being married or living together how are you going to prove that you have a family like relationship? 

Although it is great to get creative....... I don't think your scenario will work and will get stopped by any underwriter.

Here is some info I pulled from the FHA guidelines....

Maximum LTV

When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% LTV. Maximum financing however, is available for:

• Borrower related by blood, marriage or law, such as
  • - Spouses
  • - Parents-children
  • - Siblings
  • - Stepchildren
  • - Aunts-uncles and
  • - Nieces-nephews or
• Unrelated individuals who can document evidence of a longstanding, substantial family-type relationship not arising out of the loan transaction.

  **Please Note: If a parent is selling to child, the parent cannot be the co-borrower with the child unless the LTV is 75% or less.

  Signature Requirements

  All borrowers, regardless of occupancy status, must sign the security instrument and mortgage note. Co-signers do not execute the security instrument or take title, but they must sign the mortgage note.

  Restrictions

  If the LTV exceeds 75%, a mortgage with non-occupying borrower(s) is limited to a one-unit property. The non-occupying borrower arrangement may not be used to develop a portfolio of rental properties. The financial contribution by the non-occupying borrower, and the number of properties owned may indicate that the family members are acting as "strawbuyers."

@Simo Lachgar

Typically with blanket mortgages all the properties become collateral under the blanket mortgage. If the properties are being financed individually with a reasonable down payment I am not sure hoe they could hold other properties collateral. 

It is part of the process to know all the properties that you own and what they are worth and what the mortgage balance is that you have in the property. The other properties aren't actually used against the mortgage, just the DTI.

@Matthew B.

How many mortgages do you have? To cash out on ARV - conventional financing requires 6 months seasoning. You can do this on up to four mortgages. After you reach 5 or more mortgages, guidelines change and you have to get creative to cash out - rate and term refinance a private or HML, that than requires closing twice.

Here is some information on cash out refinancing, http://www.biggerpockets.com/blogs/5110/blog_posts...

I hope this helps to clear up your questions. 

@Brent Seehusen 

You can finance up to ten properties with conventional financing and terms out as far as 30 years. 

SFR down payments can be as low as 15% but would also require PMI as it is less than 20% down.

MFR require at least 25% down with conventional financing.

@Jeff L.

Yes. It is a greater risk for you to walk away from an investment than a primary, when things get tough. Putting down 25% versus 20% can make a big difference in rates.

@Oraude Boston

Absolutely anytime. I am always glad to answer any financing questions and help you come up with ways to accomplish your goals. 

Thank you for the mention! I am always glad to answer any questions. 

@Brian Mathews

I have seen parents that gift money to their children for the down payment to help them get started. 

@Andrey Y.

@Brandon Turner

@Joshua Dorkin

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