All Forum Posts by: Jon Puente

Hey Amanda, 

If these are residential properties, then you have 2 options for refinancing - 

1) Conventional - Takes your income + debt and thats how you qualify. 

2) DSCR: Takes the monthly rent - payment and thats how you qualify, pretty simple.

If these are commercial, then you will have different options as it depends on the type of asset they are and cashflow. 

Great Question!

Hey Jordan, 

I have been researching a ton.  The problem is people didn't know that the 6% commission has always been negotiable.  Many big companies say "take it or leave it". 

Now, its just listing agent gets paid from seller and the buyer figures out what they want to do.  

It mainly affects VA buyers and people who dont have enough for down payment, closing costs, and now buyers agent. Although, you can still negotiate seller concessions to help with some or all of that.

Its just more negotiation now and less about what is given on the MLS listing.

Hey Ryan, 

You can buy a primary residence or investment property with a Conventional loan, it works exactly same.  However, here are the differences:

Primary - 5% Down vs. Investment - 15% Down

Likewise your interest rates on primary is around ~7%, while your interest rates for investment is closer to ~8% right now.   Closing costs are typically between 6K-10K in either scenario.  

Sounds like you need a new loan officer if I am being completely honest.  This is pretty basic stuff to explain to a client. 

Hey Nolan,

Couple of things - An FHA loan can go up to 56.99% backend DTI (max) so you have room if you are only at 50%.

You cannot use a DSCR loan for a primary because they calculate the ratio based on fair market rent.

The only question here is whether you qualify for the house or not upfront. You can't buy a house and then your DTI be too high for that house, otherwise you would have been denied financing.

When you turn the house into a rental later on, you can use rental income to offset the payment and buy a new home, but it cannot be an FHA loan (you can only have 1 FHA loan open, unless there are extenuating circumstances).

Hope this helps!

Hey Lou,

Lenders have different spreads on loans.  You can price out the same exact scenario with 100+ lenders, and each one will have their margins.  I am a broker and literally shop people and see who is more aggressive (or not as aggressive) based on the situation. 

Hey Dylan,

I would work with them and figure out a solution to let them go.  Make sure there is nothing broken/damaged on the property and start advertising to get the property rented. 

Hey - At least they gave you a warning and let you know the situation they're facing!! Time to be a human and work with them. Depending on your lease, this is also grounds for keeping their security deposit so use that as needed. 

Hey Brian, 

Paint, Flooring, or knocking down walls & opening up space (like open concept kitchen). 

I actually just did a renovation on one of our properties and split the master closet into 2 separate closets.  Cost was about 3K for framing/door/lights, etc... But it turned our property into a 4b/2bath instead of a 3b/2bath.   Added about 20-30K worth of value.

Hope this helps!  

Hey Anthony, 

This is a great question. I personally would leave it alone and here is why:

1) If you are going to live in the property for another 2-3 years at least, then I would plan for a complete refi of the property to reduce your interest rate + remove PMI. You can knock 2 birds out with 1 stone.

2) A lot of people do not know this, but you get better rates at better LTVs. So if you can get to 75% LTV, you will get a better rate than 80%. The next tier is 70% LTV, and then 60% LTV. Anything 60% or below is the same pricing (the best pricing). So if you can hold off and continue to pay that mortgage down, it will make the refinance even sweeter!

I personally would not jump the gun until a year (or so) from now. Pay down the loan and let natural appreciation work for you to get the best LTV possible on the refinance.

Hey Travis, 

Congratulations on your step into Real Estate! Let's connect sometime and make something happen in 2024!

Hey Lynn,

They are probably asking this question for reserve requirements on investment properties. Even though you did not use it, did you supply them with a 401K statement for reserves?

To be honest, it should have been caught prior to closing as a PTF condition (prior to funding).