All Forum Posts by: Lyndsay Zwirlein

A condo and condotel as property types are more challenging to finance. A single family home and townhome are viewed the same way from a lending perspective. They are easier to qualify for conventional loans. Conventional loans will have better terms.  This could help you get into a property for less money down (like 10-15%).

However if your partner who is injecting capital does not want to be on the loan, you could look at DSCR. That will require 20-25% down. They have less restrictions with condos. More flexibility with closing in an LLC, etc.

For a house hack (meaning it's owner occupied), you'll need to wait until you have 2 years history for conventional, bank statement loans, etc. DSCR could work but cannot be owner occupied. What about seller financing? Or subject to?

I listened to an economist last week who was saying that when rates go down again (possibly next year), it will be another "feeding frenzy". Right now some buyers are spooked by the market or waiting for rates to come down, so there's less competition.  Could be a great time to get into a deal when there aren't 12 offers in a day, negotiate to get the seller to cover your closing costs and refi when rates come down.  Only if the #s work now though!

Most programs allow you to close a DSCR loan in a new LLC. Super common as a lot of people will create an LLC specific for an address. Also some DSCR programs will not source funds but will instead do an IBV (instant banking verification). This means the fund have to be in your account one week before closing when the IBV is done, but they do not have to be sourced or seasoned.

There are still programs out there that can do HELOCs on investment properties. However a lot of them have limitations if the property type is a condo. Call around -- you can find one! 

Just had an issue with this on a property I personally bought in October. We closed the loan with a policy through Proper. After the fact we're having a ton of issues because Proper removed the wind coverage at some point during underwriting and before closing. I am still dealing with it but my solution will likely be moving the entire policy to Kin, which offers both hazard and wind all in one. Apparently there are standalone wind policies my agent told me, but they are expensive.  The coverage through Kin was about the same cost as Proper. good luck!

Do they report to your credit bureau? We need more info. I'd recommend speaking to a lender so you can get into details. In general, if you own more than 25% of a business you have to provide those tax returns if you are applying for a conventional loan. For DSCR, it doesn't impact the loan for the investment property because it doesn't require your personal income or DTI.

Could you keep the FL property as a rental and save for another property to purchase wherever you move next? For owner occupied properties, an FHA loan only requires 3.5% down.

Are any of these with points?