All Forum Posts by: Joe Stretch

@Jennifer L. I'm sure some will, but there are others that won't (require a license).  Best thing is to just put it out there and talk to multiple different companies and types of companies. (brokers vs banks, commercial vs residential) They know that people need to be sponsored. Only way to know for sure is to go talk to them...It's the old adage of "Get in where you fit in".   :-)

@Account Closed I think it depends on the organization you are applying with.  As I mentioned above, for someone brand new, I might try the major banks just to "get your feet wet" and learn the language of loans.  They wont be as stringent on needing your NMLS license up front, but a broker will be.  Yes, you will need a sponsor.  Check out this link...looks like there is opportunity in your city. 

https://www.glassdoor.com/Job/blacksburg-mortgage-loan-officer-jobs-SRCH_IL.0,10_IC1129954_KO11,32.htm

As an employer myself, I will tell you that if I find a person that seems to have what it takes, I will help them get licensed.  I'm sure you're "that person" or you wouldn't be looking for info on BP.  :)  

@Antonio Porta I read a lot of books, but none on mortgages.  The opinions I am sharing with you is based off my own experiences over the years.  Keep seeking the knowledge though, the more you can learn from other's successes and failures makes our own paths a little more stable...

@Jennifer L.  I'm a licensed MLO here in CA and have been in the mortgage biz the better part of 15 years.  In my humble opinion, If you want to learn the business, find a local broker as they deal in a lot of different situations thereby providing a diverse experience, but they are usually commission only.  If you just want to jump in and get a small salary apply to the banks.  They will be more conservative and have only one way of doing things, but they serve their purpose as well.  Good luck!

@Susan Clark Hi Susan, I'm a licensed insurance agent here in CA. (Lic# 0K68442).  Your rental dwelling policy has an option for medical coverage for instances exactly as this. Reach out to your insurance company and let them know what happened.  You should not be subject to a deductible.  I'm sure you have liability included with your policy as well, but this doesn't appear to be a liability situation.  Should be an easy   situation to deal with. 

@Antonio Porta Great thoughts, great questions...so few insights on this.  I will try to be brief.  First of all, keep in mind that both the programs you've mentioned are designed and set up for first time home buyers who don't have a huge down payment, they are not set up for real estate investors, so a strategic approach is warranted.

With the Freddie program, to do units, you would need 5% down instead of 3%.  You will also need to find a lender that underwrites directly to the program and does not "over-lay" the guidelines by limiting you to 1 unit.  This link may help:

http://www.freddiemac.com/homepossible/

For FHA, you can do the units, but for 3 or 4 units on FHA, the property must cash flow. What that means is that the market rent for each unit (including the one you would live in) would need to total more than the PITIMI payment (Principal, Interest, Taxes, Insurance, Mortgage Insurance). The mortgage insurance for FHA now is expensive and is forever, but the pricing is usually better. If you have the down payment for either program, use the final payment as the measuring stick...this will also help longer term cash flow.

Ultimately, if you don't own a home now (making that assumption), buying units for a first home is a fantastic idea, but assuming you would keep those units and try to buy more units, you may find some challenges there, depending on the situation. 

Keep a couple things in mind...You can only have 1 FHA loan at a time. To an underwriter, going from units to a SFR is a more natural thing than the other way around. What you buy as owner occupied, per the note you will sign, you would need to live there at least 12 months. Knowing the caveats of the lending programs can be very valuable knowledge with your mind set. Hope this was helpful!!!

@Jim Webster @Jonathan Pflueger yes, definitely something else going on...I'm a licensed MLO here in CA (nmls 1503643) I've mentioned before that lenders have "over-lays" which are extra guidelines, and it sounds like you are only getting one opinion, maybe not the correct one. 

"Age of accounts" is a subjective opinion. Your credit score is awesome, and yes, you can maintain that for a lifetime by just being aware of your situation. As far as cash in the bank, if you are looking at investment property, a lender may likely ask to see 6 months of PITI that you have access to, but never a flat dollar amount like "$50,000".

Most lending requirements are based on ratios. Loan to value (LTV), Debt to Income (DTI), etc, etc. Sounds to me like you are either speaking with a local conservative bank, or a misinformed individual.

If you want to "play the credit game", one simple option is to open a credit card or 2, but don't use it.  Just open it and let it sit on your credit bureau.  By doing that it increases available credit, which, ironically enough, is also another ratio in play when looking at mortgages.  Remember, banks like to lend money to those to appear to not need it, but

from what you are describing there should be no issue with getting a loan.

I have a friend in Colorado that is a mortgage broker.  If you want to get a 2nd opinion from him either message me, or Google my first and last name and give my office a call.     You will get it done...

@Mark Welp @Matt Millard

Great conversation thread here fellas.  Personally fond of the Roth and the life insurance for liquidity, have both myself. 

I'm a licensed life agent myself in CA (OK68442), and have a couple clients that do fund their RE purchases with life insurance loans and its a fantastic product for that.  The key is that when you take the money you borrower AGAINST the policy cash, not FROM it.  You get gains on the full cash value as if you never touched it.  When you pay yourself back, you're that much further ahead...not sexy products, but very functional when structured correctly. 

@Travis Tannahill Travis, I currently own an insurance agency and am also a licensed MLO.  The advice you are getting above is very sound and there is a lot of merit in picking 1 and sticking with it. 

In that same breath, personally speaking by doing both, I am able to bring greater value to my clients but the trick for me was to hire staff to pick up the busy work and allow me to focus on increasing and maintaining my client base.  It is legal, it is ethical and it is possible.  Make sure to disclose everything to every governing agency. 

What I've found personally is that I have more meaningful conversations with my clients and they feel more comfortable only having to divulge their financial "life story" to one person opposed to many.  I only average 1+ loans a month and granted, if I only did loans  that number could be much higher, but I find great satisfaction is doing both and these loans are coming from people I am already having insurance conversations with so I'm not spending resources originating the loans and I don't market for them directly.   My 2 cents...   

@Jeremy G.As a licensed mortgage loan originator in CA, I can tell you that per the note, you do need to occupy the property within 30 days. That said, for the lender or an FHA rep to physically come to the house and check is very highly unlikely and the only time I've seen it happen was because there was fraud involved; I wouldn't worry too much.

In terms of the tenant, it sounds like he's just an unproductive member of society.  In my experience through my own dealings and those of people in my circles in dealing with folks like this, James hit it on the head in his post above; cash is king. 

If you have a friend that knows the tenant, talk to him (the tenant).  Find out what the dollar amount is that would get him and his buddies to hit the road for good.  Whatever that dollar amount is, negotiate it as low as possible, make him sign an agreement and don't pay until all his crap is out then see if the sellers will help pay it.  At that point you will know what it takes to close the deal and then you decide if its still worth it.

Again, just my personal opinion, but sometimes the direct path is quicker and easier than the judicial one.  Good luck!