All Forum Posts by: Lola Omishore

Yes to add more to the discussion Lending One won't loan to you if you or your LLC doesn't already have two current rental properties. JUST FYI

Lima One's 30 year rental purchase loan is ranging from 7.4-8.5% with 70% LTV.

Lending home's 30 year rental purchase loan is ranging 7.8-8.5% but they allow you to do 75% LTV, of course a higher interest rate Is the trade off.

COGO Capital rental loans is still on hold as of June 1st.

Visio has a 5/1 ARM currently, no 30 yr terms yet.

@Kevin M Finley I can send you the updated term sheets for Lending Home and Visio Lending. I’ve been in regular contact with reps from both over the past month.

@Kelson Kanu

You’re very welcome!

As far as your credit is concerned, the first thing to do is to create an account with CreditKarma.com

Use that to take a look at what your estimated credit score is (it’s typically 20 points above or below what the 3 credit bureaus report your credit score to actually be. But you will know where you stand as far as having excellent, good, average or bad credit which is crucial.

When reviewing the credit report, look at all the factors that are having a negative impact on your score.

Some factors have an immediate and drastic affect on your credit score and can be addressed quickly and boost your score in a month’s time. Your credit utilization is one of them. If you use more than 30% of your total credit card limit, the quickest way to improve your score would be to get your utilization under 35%.

Once you do review your credit score, message me and we can go over it in more detail. After you do this, we can discuss the house hacking options.

I’m happy to help, I had to build my credit score over 160 points over the years to buy my first home. I’d love to pay it forward.

Welcome @Kelson Kanu!

To apply for a mortgage using an FHA loan, you will have to show two years of your federal taxes that demonstrate your income as what you stated in your post.

Right now, the key would be to get your credit score to be at least 680 or higher.

Then have two years of full time work w-2 salary with paystubs and federal tax returns.

Google “how much house can I afford calculator” to determine what price range you should be searching in with your current wages/salary/monthly recurring debt.

Save 3% of the total amount of targeted price ranges for the houses you intend to purchase.

Google “DACA” to learn more about the home buying process for FREE with in person, step by step assistance along the way and possibly get help with closing costs as a first time homeowner.

After two years of salaried work, bringing your credit score up, having a 3% down payment, then go to a local bank and ask to speak with a loan officer regarding applying for an FHA loan.

There are a ton of lenders still doing conventional loans on MFR. I don't know where you live, but I'd steer clear of the big banks and go to a smaller local bank/credit union in the area that you're looking to purchase a multi-family.

Every lender that I've spoken to is still doing conventional lending on multi-families.

If you can specify where you're looking to purchase, it would help to offer you lenders that I know of personally.

@Keith C. That’s great news! I just sent you a message. 

@Chris Mason, I think that OP is referring to non-conventional lending.

I’ve had the same issue since April. Looking to finance a buy and hold deal in Connecticut. But have been unsuccessful in securing financing.

I have 30% to put down, credit score over 740, liquid assets etc. 

But most lenders that aren’t back by Freddie Mac/Fannie Mae have ceased origination on 30 year rental loans and are primarily doing Bridge Loans.

Just to add some insight to the commercial lending recommendations...

I’ve spoken with quite a few banks now regarding commercial property loans and they aren’t as lenient on their requirements for financing as some would have you think.

Over 10 banks that I spoke with all had DTI limit restrictions (43-47%), higher property purchase price requirements (usually over $250,000), higher closing costs and will still require a guarantor in an LLC that would typically meet conventional lending requirements (FICO score minimum, 2 year tax returns, paystubs, etc)

Have you considered being a private investor for short term investment property loans? If you have friends that are investors or trusted colleagues, you could speak with an attorney on how to execute being a private lender.

@Nate Marshall Thank you for the update.

Do you know if they’re doing long-term, 30 yr fixed loans or are they all doing 12-24 month, interest-only bridge loans?

It’s very likely that the property seller hasn’t had other offers made yet as investors are not touring properties as they normally would due to social distance restrictions.

Is the property listing still active on MLS?

The same issue that you’re facing with securing financing, everyone is currently dealing with. Unless you know of offers already made on the properties, then you should be able to revisit this in 30 days as lenders become less gun shy.

@Brad Stafford Are you in contract on the duplexes already? Do you have a closing date?