All Forum Posts by: Jesse Rivera

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

Many of my lenders have bumped rates because they're going to have a harder time selling the loans to fannie and freddie - That's their way of limiting the origination of these kind of loans (non owner occupied and 2nd homes). My main lender didn't bump their rate, so pricing is still ok.

No. He is asking about his personal residence. Investment loans are in the 3s.

Best case scenarios, locking 2.625% right now, no points, no cash out.

You got a couple great answers and a couple "meh" answers. These are great starting points. But do yourself a Biiiiiiig favor and find a great real estate attorney and accountant, and spend the money to get the advise from them. It will save a ton of money in the end. 

When I started I did the do it yourself model, thinking I was so smart, and my partners were good guys. What could go wrong? I learned the hard way, and now run everything by my attorney and accountant. Money well spent.

As long as your DTI is under 50% with your new rental liabilities, you should be fine. Your appraisal will give you an estimated rent, and you can use 75% of that as income to help your DTI.

I'm guessing not owner occupied How much cash do you want out? Messgae me your email, ill run some numbers for you.

You'll just be past breaking even. So if you keep 10 years or more you will save money. But to me, $8600 is an EXPENSIVE price to pay to save 1/8 of a percentage point. 

You will have to go non conventional. DSCR loans don't look at your DTI, just the property income vs the debt payment. Also look at portfolio lenders, private money, and some smaller credit union/regional banks that have portfolio products.

Equity on the seller side doesn't make much of a difference, as long as the buyer's loan can pay it off. What makes a big difference is equity on the buyer's side.

You will find that every loan guideline is about risk to the bank (LTV, FICO score, income, reserves, etc.). The more equity you have when you buy or refinance (loan to value), the better interest rate you have. More equity equals less risk to the bank.

The reason VA is 100%, or FHA is only 3.5% down, is because they are guaranteed (VA) or insured (FHA) by the US government. And any conventional loan with more than 80% loan to value must have mortgage insurance. This means that if the borrower defaults, the lender will still be secure, they will not lose money (and many times make more money). These programs are designed to encourage home ownership and protect lenders at the same time.

Less risk = better interest rate.