All Forum Posts by: Marc M.

@Cal C. most companies/employers are paying less,  even without the "handout" some individuals are receiving.  And the Milton Friedman quote seems in no way related to the conversation.

@Account Closed   have not heard that one.. the poor Chinese they are blamed for everything .. first dry wall ... then faulty parts now they are nuking the public with their radio active granite  LOL... not sure how you can have radio active granite as its stone.

I understand dry wall and chemicals in the flooring like lumber liquidators but I got to think granite is OK.. but there is cheap granite from India as well. those are probably laced with curry.  :)

Mr. HML is going to have zero trust in you until you've got a done deal or two with him.

You should also have zero trust in Mr. HML to start with.

 I dont think the hard money lender cares as long as they have all their proper disclosures signed to protect their interest and your deal has enough equity to support their guidelines.

As to whether you should tell them it might be a primary, thats a grey area or unspoken of. 

Usually when you sign hard money loan docs there will be affidavit's that state you intend to use this property for business or investment uses (to avoid dodd frank). It sounds like your scenario is both investment/business and potentially primary use. Just make sure that when you refinance out into FHA/conv/ or VA financing that you have moved in prior to the appraisal otherwise your occupancy will be questioned.

By signing off on that the property as business use the hard money lender will now be willing to lend you money as they have enough documentation to protect their loan position  in the event of default and you now have a property you would otherwise would not have had an opportunity to purchase.

You could then fix it up and move into it and take out (refinance) the hard money lenders position like Chris mentioned above. Or you could take out the hard money lenders position as an investment property or second home depending on your future intended use for the property. Different intended uses will affect your loan scenario such as a higher appraisal value will be needed or a lower loan to value will be allowed on an investment or second home refi rather than a primary residence refi.

@Marc M.

Try searching the marketplace and see if you can find a connection. 

> My contact in hard money doesn't want to do an owner occupancy loan and has cited (though I'm not sure this is the only reason) Dodd Frank as a possible roadblock.

 He's saying it's harder to foreclose on you if you live there. 

> I'm envisioning a short-term loan for a couple months while basic repairs are conducted, then refinancing into an FHA loan. Any suggestions on how I could make this work?

Ya you tell the hard money guy you're going to flip it.

You decline to mention that you're going to flip it into your primary residence when you refinance FHA after it's in livable HUD-compliant condition, and the hard money loan is probably going to have things in it wherein you promise not to move in... those promises only apply for the life of THAT loan, they have nothing to do with future financing.

I'm not at work and do not have guidelines in front of me, but I'm pretty sure FHA will allow you to do a rate/term refinance to 96.5% LTV. Check with your go-to soft money lender, and run the entire scenario past her. I think the key word is FHA Secure, but don't quote me on that.

Honestly, it's been a while. That's what's in my brain. Go check with your go-to soft money mortgage gal with her guidelines in front of her.