All Forum Posts by: Julee Felsman

@Dado Vucak Nope, this scenario is for the purchase of a secondary residence. Whether you have another loan or not doesn't matter. Both the first and second mortgages would be secured to the property you are buying. 

The only way your primary residence matters is as a part of your debt to income ratio. Whatever you pay for housing (be it rent or a mortgage) is part of your DTI.

@Dado Vucak Just monkeyed around a little with our pricing engine and was able to pull up an option with a $650k first mortgage and a 70k second mortgage. The pricing's not great though... still like the conforming first option better at the moment!

@Dado Vucak I've already had guidelines for that program loosen up... so i suspect it will come back eventually. No timeline to say for sure though. The 850 loan limit is still listed on the guidelines even. It's just suspended right now.

In the meantime, the best option I know of would be a $510,400 first + a $209,600 second to get to $720k -- 90% of your $800k target price. The HELOC would be a prime-based variable rate, so you'd want to either chip away at it over time, or keep an eye out for a moment when could refinance.

The bonus of that structure is that you'll qualify for the amazingly low conforming rates for the first mortgage.

Hi @Dado Vucak,

10% down jumbo loans for secondary residences were much more plentiful prior to COVID, but they can still be had. 

I am a loan officer for a lender that offers two paths to 10% down on a vacation property. One program is a true jumbo loan at 90%. It requires no MI and is available at up to a $650 loan amount (prior to COVID we could go up to $850k on this loan).

The other program is a second mortgage that we can combine with either a jumbo or conforming first mortgage for aggregate financing of 90%. 

I happen to be in Portland too... are you shopping out at the Coast? :)

Julee

@Michael Barnhart Happy to share! :)

@Rebecca Rios No problem... happy to help out!  :)

@Bridgette Delva No problem! :)

@Rebecca Rios @Bridgette Delva It does, I'm sorry to say, matter that it's a rental now. If you check out that link above there's some more detail, but the Homeowners Protection Act only applies to 1 unit primary residences. The rules are different for Fannie Mae and Freddie Mac when it comes to rentals, so you'll need to look up your loan and see who owns it. Fannie look-up tool here, Freddie look-up tool here.

Here are the rules:

Hi @Rebecca Baggett!

Your current MI cancellation schedule would be based on the value when you refinanced in 2014. Dig up that appraisal to figure out the "value" to use. And there's a little extra nuance depending on property type and occupancy.

An MI company that I work with often has an excellent flyer outlining all the current rules, here: 

http://www.nationalmi.com/wp-content/uploads/2017/03/MI-Cancellation-flyer.pdf

It does a great job laying out all the rules and the "if/then" nuance.

If you have other questions, happy to answer 'em! (or try!)

Julee

Hi @Chris Bluem, 

When you are buying a property, lenders are willing to use 75% of the market rents, as provided by an appraiser toward offsetting the loan payment. (There is some nuance around this, but in general.) Once you own the property, you will be required to show a lease and can use 75% of the actual signed lease. For a brand new lease, you may also be asked to provide evidence of receipt of the security deposit.

If you are trying to qualify without signing long-term leases, your DTI would be better if you owner-occupy a unit for a year after signing for the new loan. (You'd have to qualify using the full payments due to having no year-long lease in place, so one of the payments may as well do double-duty and be your primary housing expense.)

As an added bonus: The terms on owner-occupied loans are better than those on rentals (usually by 2.125% of the loan amount in points). If you plan on living in one unit for a year after closing, you could qualify for the more favorable owner-occupied loan terms on it.

Julee