All Forum Posts by: Madeline Malinovsky
Madeline Malinovsky has started 0 posts and replied 22 times.
Post: Need financing to rehab

- Lender
- TX CA AZ MA
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- Votes 21
Are you hoping to live in this as a primary? An FHA 203k can be a great rehab option. Most mortgage lenders are able to do these. I'd reach out to a local bank/lender.
Post: DSCR Loan docs question

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Hi Bridgett - that is odd. I've seen different DSCR investors with different "no doc" requirements, so I would recommend getting another opinion from another bank. If this is true DSCR, it should focus entirely on the debt-service-coverage ratio of the subject property.
Post: Conventional mortgage options with a portfolio

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Quote from @Greg Henderson:
Again thank you for all of the help. I've got more questions. These might be more geared to an underwriter.
Will my rental income, for the house with a conventional loan, need to be on my tax return to be calculated into DTI or will a lease suffice? It was rented out 3 months ago. Any options?
Will a conventional loan use my business current DTI or does it solely look at reported income on returns? I've grown rapidly. So my reported income from last year wouldn't cover my current debt.
For DTI for a conventional loan, Is anything added back into the tax return income like a commercial loan adds back loan interest and property improvements?
If the business property is used in DTI, what metrics are used? Does it use tax returns, NOI, PITI / income or just debt service / income?
If it only looks at returns, does it also factor the commercial debt in any way?
Will the underwriters have to audit my business bank accounts the same as personal accounts to verify funds?
Hi Greg - I can help out a bit here:
1) Rental income is calculated from tax returns unless there is a good reason to use the lease agreement. Ex: It was not on last years tax returns bc the property was just purchase and rented out or you just moved out and rented it out (and can prove this). The reason has to make sense.
2) A conventional loan will look at the past years of income reporting on tax returns. They start with NET income from the business and then there are some addbacks. Some special investors/loan programs can accept YTD earnings with an audited P&L + Balance Sheet, however this is not as common (and often very expensive on your side to do).
3) Addbacks generally consist of depreciation, depletion, amortization & casualty losses, business use of home, mileage, and a couple others. I would recommend talking to a local lender and having them run numbers for you, and this varies based on the type of business.
4) If the property is under the business, all expenses and income should be accounted for on the business tax returns. Nothing additional should be required as the overall income (or loss) of the business is accounted for.
5) If you are personally liable for commercial debt, then it will be factored into your debt-to-income ratio. But if it is in the name of a business, then it really depends if you have ownership in that business. If you do, then the tax returns are collected, and your portion of the total earnings/losses are factored into the ratio.
3) If you are using business funds for the purchase, then they will request the business bank statements. They can question any large deposits just as with personal statements, but in my experience, I've seen underwriters be a bit more flexible with business accounts
Hope this helps!
Post: Conventional mortgage options with a portfolio

- Lender
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- Votes 21
Are the commercial portfolio names in your name? Or a business name? If it's a business, you're just fine and will not hit the agency limit.
Post: Looking for suggestions on who to use for a HELOC

- Lender
- TX CA AZ MA
- Posts 22
- Votes 21
I would recommend talking to local bank and credit unions.
Post: 2nd Home Loan Current Rates & Fees

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Quote from @Brian G.:
@Madeline Malinovsky $580k with 10% down
Hi Brian - Assuming 760+ credit I’m seeing 6.5% at the cost of 2 points still. I’ll PM you if you want more details.
Post: 2nd Home Loan Current Rates & Fees

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Just for reference: $700k with 25% down, I'm seeing 5.32% at the cost of 2 points. $700k with 10% down, I'm seeing 6.5% at the cost of 2 points. PM me if you'd like more info
Post: 2nd Home Loan Current Rates & Fees

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- Votes 21
Quote from @Brian G.:
What is everyone seeing for 2nd home loans for those with great credit? Current quote is 6.625% with 2.75 pts or 7.125% with 2 points by a proven lender who I know will close. Is this where things are at currently?
This does seem a little steep, but depends on a few factors. What's the target purchase price and down payment?
Post: Lien positions for a property

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Quote from @Richard Moreno:
I actually just asked this same question for a property I want to purchase ! Would the lender allow this if both the investor and buyer were in an LLC. Because that was my plan, my friend was going to lend me the down payment for the purchase.
Yes, if they have a stake in the purchase, then they can provide funds. This would then avoid having to add a lien to the property, so your financing options will be much easier.
Post: Arizona 1-4 unit resi investor property permanent financing

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- Votes 21
DM sent as well. We'd love to help out!