All Forum Posts by: Lyuba Barrington

Hello!

I have a buyer client who is self-employed and has hard time qualifying for a loan. He has enough cashflow in his business, but too many deductions which brings his taxable income to a very low number.

He has quite a bit of cash reserves, and the credit score in 750+ range with no adverse events on his history.

Can anyone recommend a lender for his case?

Thank you!

Essentially - for 4-unit building - the most $$ of self-sufficiency income is in fact the income from 3 non-owner units @ market rate. So.. I did remember the rule backwards. It seems to prohibit projected rental loss instead. Yes - VA loan would fare better in this case.

This is interesting... however - the provision for owner-occupant loans seems to prohibit to profit from renting non-owner units. For this property - FHA with MIP nearly misses the requirement, with just about $50 for owner to pay monthly, so saving extra $220 will disqualify them. I will find the excerpt the lender sent me and post it here shortly. Maybe I am not interpreting it correctly...

 This is great! Thank you for reaching out to me, Upen!

Hello everyone!

I think I've read everything (on BP forums) regarding 4-plex bought by owner-occupant.

Question: Does anyone have recent experience with VA or FHA loan on a property like that?

My buyer is concerned about his cash to closing requirements, which are hitting close to 10% on 280K loan.

Apparently - regular SFH 6% seller assistance allowance for FHA loans is not applicable in 4-plex situation - hence full closing costs to pay. There is also 3 month PITI reserve requirement. Can anyone comment on that please?

Also - how would FHA compare to VA zero % loan - in regards cash to closing calculation (for another potential buyer). I assume there are all kind of restriction on closing costs as well.

Thanks in advance!

Thank you for responding, Rick. The ARV is not really my concern, as I am working on behalf of the investor. And yes - I will only get paid if he buys it... but it is a valuable experience for me as an agent, nonetheless.

I don't think I would have to worry about liens on the property because either someone has been paying them or there are no liens..., otherwise it would have been foreclosed already (since 2008)... What I noticed is that property taxes have been paid all the way until last year, so it could have been sold via 2015 tax sale, or maybe going to be - in the upcoming tax sale in 2016. The yard is now mowed by the city (which also points to no-mortgage situation), which adds around $100 every 2 weeks to the bill to be settle during sale. 

As to the property in question.. I did talk to the neighbor and he is under impression that the estate is in probate... Also, I did locate the son of the deceased, although he did not respond to my emails. Not sure what else I can do.

Any thoughts?

What does generally happen to an estate property if probate is not filed?

The investor I am working for (as REA) was interested in a property which, he noticed, had not been mowed for a while. After some googling I found out that the owner has died in 2008. So I figured he died intestate and the estate has not been settled yet. I am calling the county court where the property is located and they tell me that they cannot locate the case under the name of the deceased... Looking back as far as 1985... Any ideas what can be done next?

The old obituary says that the person died in different city/county (same state) and also that all his relatives live in yet another city/county. Does it make sense to call all other places?