All Forum Posts by: Michael Cohen

Just confirming that Jerry Padilla is spot on.

Kevin Heiden the lender was incorrect. You can rent out the other 3 units immediately. You will be allowed to use 75% of fair market rent (as determined by an appraiser) as qualifying income.

Brandon West - while Bram Spiero is correct that you can get another FHA loan if you refi your existing property out of FHA, there is a big caveat to that: you cannot use the rental income from the departing income as qualified income unless the new property is more than 100 miles away. You can use the rental income on a Fannie Mae HomeReady, which is a 5% down conventional loan.

Hi @Jerry M. - Unfortunately no, FHA loans are designed for owner-occupied primary residences, defined as 1 to 4 units, so it cannot be used on commercial properties. Also, a 3.75% isn't very likely now (perhaps a year ago, yes) unless you're looking at 15 years, 20% down, and/or adjustable rate loans.

Hey @Danielle Jordan - welcome to the area; I'm in Towson.  Where in Tampa are you from? I was born in Brandon.

I know a couple of good investors I'd be happy to introduce you to.

Thanks for the recommendation, @Chris Mason .  

@Stephen Lee - I'd be happy to talk on Monday to help you develop a strategy here.  I should be in the office most of the day.

Nathan Yee We (lenders here on BP, including Chris Mason ) can't say which loan is right for you, because there are too many other factors. In general, I don't suggest you spent a lot of time researching the two loans, as that will just lead to further "analysis paralysis." Go speak with a qualified lender and they can help guide you to the right product for your situation.

Thank you for clarifying, Chris Mason Fannie Mae purchases (therefore sets guidelines for) confirming conventional loans, so any standard lender can offer a conventional loan. A vast majority will offer the HomeReady product, but ask anyways.

Fannie Mae's HomeReady is 95% LTV and allows you to have an ownership in another property. Doing one for a client now.

What your mortgage broker is talking about is if your vacating home is an FHA loan, you wouldn't be eligible to purchase with another FHA loan unless there was a clearly identifiable reason for the purchase, such as home size upgrade due to family growth.

The use of only 75% of income it to account for maintenance, unexpected vacancies, etc. That isn't restricted to any time frame, they always use 75% and that's not him overlay. That's a Fannie/Freddie and FHA guideline.