All Forum Posts by: Lyndsay Zwirlein

I'm so sorry to hear this happened! It is hard to know what is going on since the LO isn't giving you more information. Perhaps they did the VOE and the income didn't match how they had underwritten the file? I would try to get more info if you can to see if there are any other options!

Also if you were to pay a loan off for closing, could you get another car loan after you close? 

Agree with Bob -- I would consult your attorney. I really hope you're able to find a solution. Good luck!

Hey Jenny! My take on this is that he is talking about an investment home loan. It is a conventional loan and allows up to 85% LTV. Because your primary intention is to use the property as an investment home, Fannie Mae allows you to use proposed rental income to help you qualify. What this means is an appraiser will do two components in their appraisal report. The first is their opinion of market value (ie does it equal or exceed purchase price). The second is called a 1007. You can google it for more info but it is a Fannie Mae form that is the appraiser's opinion of market rental income.

An underwriter for the loan can use the rental income from the 1007 in your debt to income calculation to help you qualify for this loan type. If I'm understanding correctly, I believe this is what the other gentleman is referring to as a credit, but it is not a credit.  It is rental income from the subject property that you're buying that can be counted as income. 

Does this make sense? Feel free to reach out if you need help!! 

Congrats, Greg! Sounds like you have great momentum building! 

Fannie Mae prohibits using proposed rental income on a vacation home loan, because the primary intention must be that you are using it as a second home/vacation home.  You are permitted to rent it out when you are not there. Typical guidance is you must occupy the property yourself for a couple weeks of the year. 

There is a conventional loan called an investment home loan. 85% LTV. This loan type allows you to use proposed rental income from the new property to help you qualify! This is because your primary intention is to use it as an investment.

Hope this helps!! Feel free to reach out if there is anything else I can do to help. 

Starting too late and listening to other people's opinions who don't matter.  People can be negative. Their story isn't my story. So I wish I would've asked around to more people and/or not taken certain people's advice. Find your people and find a great mentor! Keep going! 

Luke Rorech is a great agent out that way, as well!   He is with Copeland Morgan.  It sounds like the Tampa area is very pocketed in terms of where overnight rentals are allowed and he can assist with pointing you in the right direction.   

David Greene has a great book called "Long Distance RE Investing" where he discusses ROE. If you believe your equity will get a better return with your STR idea, pursue that. If you believe it's better return on your money as is, keep the LTR. However some people have different goals. If yours isn't ROE, then figure out what the end game is and how active you want to be with your investments and choose the path that is most in line with your end game. Also we have personally owned LTR and STR. STR is a more hands on investment, so make sure you are prepared for that. Good luck!!

 Yep! Exactly! 

Agreed the DSCR is for the long term component. The scenario says the partner is bringing rehab costs so to me it sounded like a hard money/bridge component wasn't needed. But I agree that DSCR would be step 2 if a short term loan is needed for rehab!

If a fix/flip loan is used first, the same still holds true with the LLC/ownership. Good news is most fix & flip lenders will also lend to an LLC just like DSCR lenders will. some even require it!

I recommend calling around to local banks and credit unions. I just spoke with a borrower today (different state unfortunately) whose local commercial lender was doing a similar deal for him. I think you just have to call around!  

Hey Lindsey! Sounds like a great opportunity! We see this type of arrangement a lot and people typically use a DSCR loan. You can close in an LLC that is owned by both you & your partner. Feel free to reach out if you'd like to discuss!!