All Forum Posts by: Juan Hernandez

Originally posted by @Charles Xia:

Banks are a little stricter on lending. They follow their own guidelines and rates. You might have better luck looking at smaller local banks or mortgage brokers. I would suggest speaking with them first to get a good feeling with what you can borrow now. A lot of lending guidelines have changed due because of the pandemic.

@Brian Walters I was also born and raised in Queens!

Good Luck!

My first house hack is in Rosedale. Prices refuse to stop going up it’s pretty insane. I did FHA 3.5% and in 3 years I have 20 plus% in Equity.  

I want to stick to the ozone park/Jamaica/Springfield gardens/ Rosedale neighborhoods. 800k plus neighborhood.  A lot of outdated multi family houses that once in a while go on the market for 500k or a little less. 
Good luck w your goals! 

Originally posted by @Brian Walters:

@Juan Hernandez what part of Queens?  Queens lifer here and know how tough it can be to even think of investing in this area with how prices have been the last 5-10 years.  House hack seems like a great way to go if that's an option.

 Thank you so much for taking the time to reply. 
I was hoping to find a bank that would do the 10% down so I can keep some extra cash for remodeling... the goal for the next house hack is a BRRRR. Trying not to borrow for the remodeling if I don’t need to.



Originally posted by @Charles Xia:

Hi @Juan Hernandez,

Nice! Good move on the refinance. You can calculate your own debt to income ratio by adding up your monthly expenses and monthly income. Seems like that would include your car loan and your current mortgage. They also ask for all the credit cards that you have to see if you owe any debt on those cards too even if you pay it in full every month. Depending on the lender they don't really like seeing over 70-80% debt to income. I would take a look at this before you proceed.

I was just saying if you switch your property your home owners insurance is going to go up. Not your interest rate. This is pretty standard for investment properties for home owners insurance to be higher on investment properties. You will keep your current interest rate on your mortgage, that won't be affected by the switch.

Getting a 10% down is pretty hard. The lowest I've seen after speaking with multiple lenders is 15% with PMI. You will probably have to dig a bit to find a lender giving you 10% down. I spoke with maybe 4-5 lenders from different banks and brokerages.

Personally I only think 15% down with PMI is worth it if the location is good and the price is good. PMI adds a lot of monthly expenses.

I hope this helps,

Happy Investing,

Charles

Thanks for your reply. I already refinanced. Went from FHA to conventional at the beginning of the year to get rid of the PMI. I Have no debt only a 20k car loan which I’ll be done in 3 years zero interest. If I switch my original property as an investment property you’re saying rates won’t go up right? Do you think I would have a hard time getting a 10% down conventional on a primary residence in NYC for my second property? Thank you in advanced. 

Originally posted by @Charles Xia:

Hi @Juan Hernandez,

As my good friend @Abel Curiel mentioned yes. You will have to declare a new primary residence and switch the old property to an investment property. Your home insurance rates are going to go up a little bit for switching it over to investment property and please make sure your Debt-to-Income ratio is in good standing before you proceed. I assume you still have the original loan and you need to make sure the monthly debt comes down. You could refinance to get the number down. Just another thing to consider. Your interest rate wouldn't go up because you didn't acquire the loan as an investment which is the best way to do it! (Interest rates are at an all time low now). 

Congrats on the househack!

Happy Investing,

Charles