All Forum Posts by: Derek Brickley

You could potentially do 15% down DSCR, but you'll see rates rise for that as well. Happy to go through some details on that though if that would be helpful!

Not familiar actually!

Hey Franky!  Yes pretty common, minimum downpayment is generally 25% (occasionally that 20% will work) but just depends on your situation.  

You'll have all amortization options, but the most common will be 30 year fixed and that's generally the recommended one.  Rates/terms depend on US credit (if any), property type, rental amounts, etc so there is a ton of variables.  If it would help to get a more detailed estimate feel free to reach out.

Documentation is rather limited, just ID, bank statement, LLC documents to start.

Sometimes there are interest-only options at 30 and 40 years, generally the difference in payment fully amortized over I/O is minimal so it may not be worth it.

For you to refi to an investment loan, it probably isn't worth it. Rates/terms are going to be much worse. Don't get me wrong I'm happy to help get you some estimates if that's useful hahah but still not something I'd recommend. If you're looking to househack again, then the conventional 5% down is a very viable alternative to the 3.5% down FHA option.

Hey Cory! 

Actually fairly common, depending on what you're looking for property wise going forward. Sounds like DSCR as mentioned already would be the easiest way for that and wouldn't see any issues with owning/renting. If it'd be helpful to go through some details feel free to reach out, happy to explain more.

Good question here, generally speaking one year is the expected timeframe before you would be able to purchase a new primary residence (also referring to how long you would generally be expected to reside there). It was mentioned above you could refinance into a conventional loan, however with the 5% down conventional primary residence loan on multifamily now chances are you won't refinance this FHA loan unless you plan on living there for an extended period of time and rates come down. Depends on your scenario exactly though, never one cut and dry answer to which is better.

Did you purchase the property cash? Is there any financing on the home? 

If you purchased this property with conventional financing, then as already mentioned 12 months is needed to pull cash out. If it was purchased cash you can do delayed financing immediately, but it would be based on your total capital invested not current appraised value. If purchased with cash and after 6 months, you can do a cash out refinance delayed financing based on the current appraised value. DSCR has other guidelines, but generally the same rules will apply more or less.

Hey Allen, I don't mean to assume but it certainly sounds like some of the conventional lenders you spoke with might not be entirely familiar with investors portfolio structuring.  For example we largely scaled our portfolio with conventional loans, but when considering our overall application for a new conventional loan we don't get flooded with details on the other properties because it's incorporated into a business entity.  Not to get overly complicated on that and I'm not a CPA, but just an example.  Of course there are other options out there, but feel free to reach out if it would be helpful to look at some of those in more detail.

Yep! Second what's been said. Unless there is a history of STRs in the property already and you have experience with STR, you really wouldn't be able to supplement your income with that. The long term rent can most definitely be considered though for FHA. That self-sufficiency test is sometimes the killer on 3-4 units, but the conventional 5% down option has benefits too and that's how I got into my first multi-unit househack.

Now most of the time we don't see househackers/investors use in-house or portfolio loans from banks because sometimes they have more restrictive guidelines and higher fees for holding it which might cause the numbers not to work or for the deal not to go through entirely.  What caused you to (likely) lean that route over all those other options out there?

Yep very possible, that's not to say lenders don't contribute towards that buydown too.  Depending on the price range we generally offer $2,500 towards cost/buydowns for a preferred builder partners but our partners generally match that if not greater than.