All Forum Posts by: Jerry Padilla

@Jerry Dennehey

A 690 credit score is still able to get FHA financing. It may be a lender overlay.

@Jacob Michal

When you BRRR a property, the refinance replaces the existing liens / loan on that property.

Any cash out after that existing lien is paid off is yours to keep.

@Christopher Phillips

Great response!

@Kris L.

@David Espinosa is correct!

@Joseph Akingbade

I am not sure, honestly. We don’t offer these type of loans, but I have gotten one for one of my investment properties. You would have to call around to local credit unions. A personal loan is the other option if you aren’t able to find a lender offering this.

@Daniel Green

Conventional requirements are a SFR at 75% cash out, and a MFR at 70% at 6 months.

The portfolio products that I am aware of require you to wait 12 months for seasoning to go on appraised value versus purchase price, except the situation I mentioned above. One of the products will go to 80% at 12 months, but only allows a max of 350k cash back, so if you initially financed than this may not be a problem. 

@Tanner Flint

 I would be glad to answer any financing questions that you have.

@Joseph A.

What about a home improvement loan or a personal loan? Than cash out refinance after the rehab is done. 6 months you can pull out according to appraised value with conventional at an LTV of 75% for a SFR and 70% LTV for a MFR.

@Timothy Albright

Even if you intend to occupy, going from a Single Family to a Multi-Family with FHA, it is going to take some convincing to an underwriter that you intention isn't to be doing exactly what it looks like you are stating. They are going to see it as you are trying to get into an investment property with little money down.

There are other ways of coming up with a down payment to get an investment property, although not the most ideal as savings, but better than committing fraud. 

The down payment for an investment property needs to be seasoned in your account for a minimum of 60 days, without being questioned on the source of the money. This is a much better route to go than mortgage fraud. Where you source the unsecured money from, prior to the 60 day seasoning is up to you. 

Acceptable sources of down payment that don't need to be seasoned are: pulling out equity on another property - your primary, savings, checkings, retirement funds, stocks, bonds, life insurance policies with cash value. 

@Justin Jacobs

It depends on what your DTI's are, did they use the income on the property? Some lenders have overlays and some are more flexible with overlays.

There are portfolio options as well that don't look at income, but you will be paying for it in your rate. It won't be as good as conventional.