All Forum Posts by: Lyndsay Zwirlein
Lyndsay Zwirlein has started 4 posts and replied 317 times.
Post: Buying a rental with an FHA but not living in it
- Lender
- Posts 331
- Votes 209
Quote from @Tim Herman:
Quote from @Niraj S.:
Just to add on to the original discussion..what if an investor is buying a duplex using an FHA loan and rents only one side of it and leaves the other side vacant for 1 year. Does that meet the requirements of the FHA loan?
@Matthew Wolk and @Lyndsay Zwirlein how does this negate the owner occupancy requirements. Vacant does not mean owner occupied.
Yes you're right. I misread their post. I thought he said LIVE in one side and other is vacant.
Post: Buying a rental with an FHA but not living in it
- Lender
- Posts 331
- Votes 209
Quote from @Niraj S.:
Just to add on to the original discussion..what if an investor is buying a duplex using an FHA loan and rents only one side of it and leaves the other side vacant for 1 year. Does that meet the requirements of the FHA loan?
Yep!
You can use Fannie/Freddie on owner occupied and even non owner occupied properties. DSCR must be non owner occupied. Your options will depend on your situation at the time you're wanting to refi- whether you live there or not, whether you hold title, how much equity you have, etc.
Post: Buying a rental with an FHA but not living in it
- Lender
- Posts 331
- Votes 209
You must occupy the property with an FHA loan. There is no way around it. If it's an investment home, you can do a conventional investment home loan which only requires 15% down. That is going to be your option with best terms (lowest rate, no PPP, etc).
However if you want to buy your dream home in spring, you should speak with your lender on how that will impact your DTI. You cannot use income from your STR until it's on your tax returns.
Congrats on completing the flip!!!
Post: Is it true that down payment for a second house purchase is 10%?
- Lender
- Posts 331
- Votes 209
If you use the property for 2 weeks of the year, you can utilize a second home/vacation home loan which is minimum 10% down.
If it's strictly to be used as an investment home, there is a conventional home loan that only requires 15% down.
Post: Purchasing another "second home" STR in same location as first
- Lender
- Posts 331
- Votes 209
These guys are all correct. I believe it's 75 miles and has to be considered a different market (meaning you can have 2 vacations homes in North Carolina but one could be a beach house and one is a mountain house). You can look at an investment home loan (conventional), 85% LTV.
Post: Smoky Mountains - Vacation Rental Design
- Lender
- Posts 331
- Votes 209
There are lots of people on the facebook forums who post their services. There are more inexpensive options like havenly.com where they put a mood board together and product recommendations.
Post: 2nd home loan for STR
- Lender
- Posts 331
- Votes 209
Quote from @Calvin Boyd:
My wife and I are looking for a second home loan to purchase a cabin in Broken bow, Oklahoma. We will use the house for short term rentals.
Her monthly income is $12,333 (1099) mine is $3,333 (W2). Credit scores both over 780. Our only other debt is our PITI payment on our primary residence $1,005 monthly. We have $130,000 cash $50,000 stocks and around $140,000 equity in our house.
Purchase price will be around $590,000. PITI will be around $3,800. Ideally we wouldn't want to go higher than 10% down if possible.
The first lender we talked too said it would be problematic to be approved because my wife is a nurse (5 years in the field) and she is currently doing travel nursing contracts and is 1099.
If you are a lender and think you can help us, or if you know of a better way to get the financing for this deal aside from a 2nd home loan then feel free to reach out.
thanks.
I’ll reach out! I’d have to take a closer look to understand the travel nurse contracts and how it’s reported on tax returns. But even if vacation home loan doesn’t work, you can pursue a 15% down investment home loan (conventional). It allows you to use proposed rental income from the new Broken Bow property.
Post: Debt Service Coverage Ratio Loans
- Lender
- Posts 331
- Votes 209
Quote from @Caleb Smith:
On the last step of the BRRRR process, I am wanting to use a loan to refinance the property and pay back the hard money lender.
However, the lender I spoke with said it would be hard for me to qualify based on my past 2 tax returns.
Isn't the DSCR loan based on the projected rent and debt service, not personal tax returns and income?
Any help on this would be greatly appreciated.
Yes! That is accurate. One of the biggest challenges with DSCR on the cash out refi part is meeting seasoning requirements. But typically lenders can do 70-75% (sometimes 80%) LTV of appraised value if you've owned greater than 6 months.
Post: Frustration/venting post any ideas about my situation with DTI
- Lender
- Posts 331
- Votes 209
DSCR cannot be owner occupied, so you couldn't use that if you are wanting to house hack your new purchase.
Based on what you described, it sounds like you should have a deal here. I would recommend speaking with a lender who can use your 1 year of rental income. Also DTI can go up to 50% on a conforming loan (ie non-jumbo).