All Forum Posts by: Jesse Rivera

OUCH! The stand alone test (self sufficiency) is a rookie mistake for FHA 3-4 units. In my area, with cap rates so low, it's often a deal breaker. Lesson learned - always work with a lender that knows investing. It really is a different animal.

Your lender should be able to extend the lock and keep your rate. If it was his fault, see if you can get him to pay for it. If your lender won't pay for it, it's up to you to decide if it's worth it to pay to extend, or start over. Cheers!

If you have more than 25% ownership in your S-Corp, you are still considered self-employed. You should have no problem getting a loan, if you meet the income and credit standards. I don't know what the other lender was smoking.

Depending on the type of loan, you will need 2 years of personal and business tax returns (combination of 1099 and C-corp will work), and a P&L for 2021.

What state are you in? I am licensed in CA, but know a couple great lenders that can lend anywhere. Let me know if you want a referral.

I think rates won't be going up much in 2021, and may even go down again. 

How long have you had your soccer business?

When you lock, you aren't acutally locking in an interest rate, you are locking in the pricing for that day. You can choose any interest rate for that pricing, just may cost you money, or you get more money back. And as many have mentioned, if the terms of the deal have changed, the par pricing (rate that does not cost you money, or you get money back) may change.

Rehab loans (like FHA 203k) can be a blessing or a nightmare, just depends on who you use. I've done them as the lender, and I can tell from experience that the 2 components that will make or break the deal are 1. The contractor and 2. the lender.

Need to find a contractor that has experience with these loans, because they have to jump through a lot of hoops, and the bids have to be done a certain way. I've been involved in deals where the contractor just got fed up and went dark. No bueno for the deal.

Also, need a lender that does these loans, and has departments dedicated to doing them. They usually have an experienced point person that guides you through the process.

I have a couple great rehab lenders that I work with. Let me know if I can help.

Hi Brian,

First step is to talk to a mortgage broker (like me, cough cough) and find a loan product that fits your goals and situation. You don't want to put the cart before the horse and start looking at properties first. 

How many units?

There are loans where you can use the rental income to qualify, instead of personal income. They are called DSCR loans (sometimes DCR). Interest rate is a little higher, but not horrible.

Let me do some snooping. I work with over 100 lenders.