All Forum Posts by: Jerry Padilla

@Jeff Roberts

As others have mentioned you can cash out on the property now with conventional. A SFR is an LTV of 75% for an investment property and a MFR is 70% LTV for an investment property. Let me know if you have any questions on cashing out.

@Andrew Zannotti

A rate and term refinance of the hard money doesn't require any seasoning as long as it is recorded as a lien against the property with conventional. The portfolio products I am aware of won't allow it for an LLC.

A conventional loan allows you to cash out refinance at 6 months and is where you will see the lowest rates.

Portfolio lending that I am aware of requires 1 year to cash out on appraised value and will have higher rates. You may find other lenders without seasoning requirements for a cashout with an LLC.

@Ellen Alvarez

I don’t think it is a bad decision. Maybe get the house up to par and sell the money pit once ready? Or hold it to hopefully recoup your money at some point? Take it as a learning lesson.

At this point what other choice do you have? A foreclosure will hurt your credit for a long period of time and destroy your credit. If you can sell and break even maybe consider that?

@Samira King

Not sure what you owe........

But for a cash out on 570k you would be at $427.5k max.

Those credit scores are going to have even higher rates with portfolio lending which is what route you will need to go if avoiding conventional lending based on income.

I would suggest selling the property, and fixing your credit scores, then purchasing another property.

@Omer Zulfiqar

Are you looking at residential 1-4 unit properties or 5 units and greater?

You will get the best rates with conventional financing if 1-4 units.

@Joel E. 

If you plan to pay cash for the properties than a strategy to consider if you want to cash out prior to 6 months is structuring the renovation costs into your initial cost. 

If you include on your closing statements (which vary state to state - HUD-1/ALTA statement ) the renovation costs - and have them charged at closing...... This renovation cost now becomes an initial closing cost and can be included with the max that you are able to pull out prior to 6 months. This can be done when you are using delayed financing. This is also dependent on the underwriters discretion, so it is no guarantee, but I have seen it successfully done.

@Freddie Williams

@Jinglei Cui

I know a knowledgeable commercial lender that I refer business to. Let me know if you have any questions. 

@Joseph Pucci 

It depends on the lender itself if you will get points, as well as the loan amount (under $50k count on points) and your credit score. 

Rates go by 1/8th. There is no baseline on the bases points, it all depends on your specific scenerio. There is no rule of thumb to follow. 

Discount points is usually to buy down the rate. Origination points are lender fees. Points would only go on each individual loan. 

@Gauthier D.

Yes Home Possible is still a primary residence only product. You may be mixing it up with a renovation product called HomeStyle? Let me know if you would like info on this product that allows for investments. 

@Jorgen Nicholls

This guideline is geared towards a primary purchase that is then transfered to an investment property after the 12 month requirement. But it still states that you could be required to transfer back to personal name if the servicer requests you to do so.