All Forum Posts by: Larry Bowers

I wonder the same thing. The loan is kind of like buying salt or sugar; they are just commodities and brand name doesn't make much difference. So how to differentiate between them all? 

@Chris Mason can you help with the question I have above? 

Is that normal then to get a discount the origination fee if I am putting 25% down vs 20% on a rental property? I thought it was just the interest rate that went down with an increased down payment. I am in a situation now where I will pay 5.25% for 25% and 5.75% for 20% down. Would appreciate your insight, Eric. 

Does a blanket loan = commercial loan? What would typical terms for term, recourse / non-recourse, amortization period, closing costs? 

Mark, I am not answering your question, but this may be helpful since you're new to lending. There is a document you can record at the courthouse that will notify you if there is an attempt to foreclose by the first position lienholder. Just ask an attorney about it.

He may have done you a favor in the long run. Do you really want to be doing business with someone that will do you like that? Now you can find an ethical lender. 

When are hardship is involved, like your parents are sick and you need to move to take care of them, a job moves you across the country, etc, then I believe you could rent it out ahead of time to avoid financial problems with keeping the house empty because of the agreement. The lender will know. 

I've met other investors that bragged about getting over on the bank by getting a oo loan and then renting it out a few months later. That was a fair warning not to heed their advice on other matters. 

Surely some lenders will weigh in here, but what I know is that to do the blanket loan you are describing, it will be a commercial loan, not one of the fannie / freddie types which have to be separate loans for each property. There's that flexibility there with commercial loans to cover more than one property and they will let you keep it in the name of an LLC as well.

After you have 10 of the fannie / freddie type loans, I believe the only type of financing you could get would be a commercial loan anyway. What one lender told me is that typically a commercial loan generally requires at least 30% down payment and typically about 1% higher than a typical non-owner occupied fannie / freddie loan. I'll probably be seeking my first commercial loan here soon. I have mortgage #8 from fannie this month. 

When calculating DTI, rental income is counted at 75% of what is the lease. So if I have a $750 mortgage on a rental with $1000 monthly rent, that would net out to $0 as far as DTI?

@Chris Mason Sounds intriguing, really. 

Could you elaborate more about the "no rental income is being used for the subject property"? Does that mean that the rental income is not used in calculating my DTI? Or that the house is being bought as owner occupied?

And how would engaged this, just ask my lender to kindly consider me for an appraisal waiver?