All Forum Posts by: Jerry Padilla

Program Overview

• No personal income used to qualify
• Qualification based on property cash flow
• 2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
• Credit scores down to 660
• Rates starting in the 6’s
• Up to 80% LTV
• No DTI restrictions
• Must have current mortgage
• 1-4 units and condos
• No limit on number of properties financed (5 loans or $3,000,000 in aggregate with this program)
• Minimum Loan Amount -$100,000 
• Loans up to $1.5 million
• Seller concessions to 2%
• 7/1 ARM

Eligible Loan Purposes:

• Purchase
• Rate/Term Refinance
  • The loan-to-value will be based off of appraised value.
  • The property cannot be vacant.
• Cash-Out Refinance
• If the property has been owned for more than twelve (12) months, the LTV will be based off of the appraised value.
• If the property has been owned less than twelve (12) months the LTV will be based off the original purchase price.
• The borrower must be on title for a minimum of three (3) months.
• The property cannot be vacant at the time of closing.

Taxes and insurance escrows required for all loans.

*PRIMARY RESIDENCE ONLY - UNLIMITED AMOUNT OF FINANCED PROPERTIES

*MINIMUM CONFORMING LIMITS + $1 – NO EXCEPTIONS

*Maximum Financing Total Under This Program is $3,000,000 unpaid principal balance

* NO MI

30 yr fixed

5/1 ARM

7/1 ARM

Purchase/Rate & Term Criteria – LTV

• Seller may contribute up to ( 3% if >90% LTV) & (6% if < or = 90%)
• Gift Finds not allowed if >90% LTV
• No Escrow Waiver

Cash Out & Rate & Term Criteria

• 6 month seasoning requirement
• Property must not have been listed for sale for previous 6 months from application date.

*Non Traditional Credit Not Permitted

*Declining Markets noted by appraiser - LTV will be reduced by 5%

* New York and Maine not available, Most States This Program is Available!

* Massachusetts not allowed

Properties Allowed:

Single Family (Detached, Semi Detached, Attached)

1-4 units

PUD (Detached, Attached)

Warrantable Condominium(Detached, Attached)

Non-Warrantable Condominiums Attached/Detached) including Condo-tels.

(Subject to Prime Lending Approval)

** FIRST TIME HOME BUYERS - payment shock ratio is required unless living rent free or currently own home free and clear. Caluclation divides proposed monthly housing payment by current total monthly housing payment. This ratio must not exceed 250%.

1-4 Unit Primary Residential Property or 1 Unit Second Home

• 95% LTV
  • 700 Credit Score Required
  • $3,000,000 max loan amount
  • 9 months Reserve Requirement
  • No Mortgage Insurance
  • Max DTI 45%

$2,000,000 max loan amount

• 90% LTV
  • 700 Credit Score Required
  • $3,000,000 max loan amount
  • 9 months Reserve Requirement
  • No Mortgage Insurance
  • Max DTI 45%

Cash Out Refinance Criteria - Maximum Cash Back - $500,000

1-4 Unit Primary Residential Property or 1 Unit Second Home

• 85% LTV
  • 700 Credit Score Required
  • $1,500,000 max loan amount
  • 9 months Reserve Requirement
  • No Mortgage Insurance
  • Max DTI 45%

Cash Out Debt Consolidation - Maximum $100,000 to be paid off

1-4 Unit Primary Residential Property or 1 Unit Second Home

• 95% LTV
  • 740 Credit Score Required
  • $750,000 max loan amount
  • 9 months Reserve Requirement
  • NO Mortgage Insurance
  • Max DTI 35%
• 90% LTV
  • 700 Credit Score Required
  • $750,000 max loan amount
  • 9 months Reserve Requirement
  • No Mortgage Insurance
  • Max DTI 35%

Texas Re - Financing Only

1 Unit Primary Residential Property Only!

• Rate & Term Refinance:
  • 80% LTV
  • 700 Credit Score Required
  • $3,000,000 max loan amount
  • 9 months Reserve Requirement
  • NO Mortgage Insurance
  • Max DTI 45%
• Cash Out Refinance:
  • 80% LTV
  • 700 Credit Score Required
  • $1,500,000 max loan amount
  • 9 months Reserve Requirement
  • No Mortgage Insurance
  • Max DTI 45%

@Account Closed

If you are renting, why not start out with purchasing a primary residence? You can go up to 4 units, with conventional. The tenants will help pay your mortgage. Maybe find one that needs some cosmetic updates, that you can fix up and increase the value of the property and rents after the repairs are made. Just some suggestions.....

@Cheri Castro

Do you mean that you are going from W-2 1099?

If so, you would have to wait 2 years for conventional financing and the purchase would have to be done with portfolio or commercial financing.

@Rachel Coleman

FHA may be the best way to go.

Maybe a multi-family to help pay the mortgage.

@Brad Pietrzak

You only need to put down 25% for a multi-family.

The rest you can save towards the next purchase.

What about using the BRRRR strategy and find one that needs some work or cosmetic updates? You can then force appreciation and cash out refinance the property and use that money to then purchase the next property at a faster rate.

@Evan St. George

When my wife and I purchased our first home together we went with an FHA initially. We fixed it up and forced some equity in the property and then refinanced with a conventional mortgage to avoid mortgage interest.

The market here is kind of crazy right now! Properties are getting several offers the day they go on the market, when priced at market. 

There aren't a ton of MFR on the market. Where are you thinking of purchasing?

@Rodney Harris

If you are planning to live in the property, you can go up to 4 units as a primary residence with an LTV of 75% including the estimated renovation costs.

Investors are only able to do 1 unit with this product. 

@Elvin Tolentino

When you cash out refinance a property - all liens get paid off first, than you would get the leftover cash, if any to purchase the property or recoup your costs. 

For conventional the value is determined by the current appraised value, after 6 months if you initially purchased the property using financing. 

@Mario Walker

Is thais a SFR or a MFR?

If the property is a SFR than you can do a cash out refinance at an LTV of 75%. If the property is worth $195k than you would be able to cash out $146.25.

The Pro's are you will eliminate mortgage insurance, if you currently are paying that with the FHA loan, as well as getting the cash out for another investment property.

The Con is the costs of refinancing, and possibly a rate increase.