All Forum Posts by: Michael Cohen
Michael Cohen has started 0 posts and replied 440 times.
Post: Lending options for REO requiring TLC
- Investor
- Towson, MD
- Posts 472
- Votes 257
Originally posted by @Charanjit Singh:
Fannie Mae HomeStyle can be used for a 1-unit investment property at 15% down.
Post: Lending options for REO requiring TLC
- Investor
- Towson, MD
- Posts 472
- Votes 257
hi @Charanjit Singh there are some great renovation loans from traditional/conventional lenders available, whether the property is owner occupied or not. FHA 203K, Fannie Mae HomeStyle, etc
Speak With a qualified lender in your area, but definitely use a loan officer who specializes in renovation loans.
Post: Renting out 2 bedrooms In a 3 bed FHA Owner-occupied House
- Investor
- Towson, MD
- Posts 472
- Votes 257
from a lender/mortgage perspective, there is no limit on you renting out other rooms as long as you maintain residence in the property. However, many cities/counties have laws about the number of unmarried people who can live together in a single home. You find these near colleges - towns try to clamp down on rentals and/or party houses. So check into that.
Post: 1099 "self employed" - Trouble for conventional mortgage?
- Investor
- Towson, MD
- Posts 472
- Votes 257
Post: Income Approach for FHA on Duplex
- Investor
- Towson, MD
- Posts 472
- Votes 257
Originally posted by @Phil Bullock:
Thanks Michael for the response. I'll accept this to be correct then. With that said, it still seems wacky considering the appraisal should tell me the value of the property. The income approach, in this case, does not tell me the value of my property from an income perspective. It seems highly misleading to call this an "income approach." I'm not getting a fair assessment from that perspective. Thanks again!
I'm sorry; I'm not clear what you're looking for. The appraisal DID give you the value of the property. The value of the property is what the appraiser determined.
FHA, and other government loans, do not use income approach. The income approach is for commercial (5+ units) only.
Post: Should I use the $155k loan I'm approved for now or wait a year?
- Investor
- Towson, MD
- Posts 472
- Votes 257
In order to be able to use secondary income - income from a secondary source - you must have a 2-year uninterrupted history of working a 2nd job. Unless your W2 income doubles to the $6,000, you still would not qualify after only 1 year.
Post: Rate Paydown for Fannie/Freddie Conventional Loan?
- Investor
- Towson, MD
- Posts 472
- Votes 257
Originally posted by @Lane Forhetz:
@Michael Cohen, I'm more than happy to do so, however I want to ensure that I won't end up with the same situation at the next lender. Loan officers don't have a squeaky clean record with me and their promises...
Can you confirm this is 100% a lender fee and not a Fannie/Freddie Requirement?
For a couple of reasons, I cannot 100% confirm this is a lender fee; perhaps you misunderstood what he was saying, or what the fee was. I can tell you with 100% certainty that buying down a rate is absolutely not a Fannie/Freddie requirement. Spending money to purchase a better rate is your prerogative as a mortgage consumer.
Post: FHA lenders in Westchester county / NYC
- Investor
- Towson, MD
- Posts 472
- Votes 257
FHA is the easiest loan to find a lender for - they're everywhere. Any bank, credit union, a national lender, or mortgage broker will be able to help you. If you're working with a realtor, ask for their recommendations for a qualified loan officer.
Post: Rate Paydown for Fannie/Freddie Conventional Loan?
- Investor
- Towson, MD
- Posts 472
- Votes 257
no. talk to another lender.
Post: Income Approach for FHA on Duplex
- Investor
- Towson, MD
- Posts 472
- Votes 257
Originally posted by @Phil Bullock:
I recently received an offer to purchase a duplex I own. The appraisal came back at roughly 65K less than asking. When I look at the appraisal, I see that he struggled to find comparable properties in the area and ended up using duplex properties 12 and 13 miles away... OK I get it. However, on his income approach, he decided to use only rents for 1/2 (1 unit) of the duplex (stating that with FHA owner-occupied loans, he can only use the income from the half the owner will not live in). There is no way this can be correct! Is he right?
Yes, absolutely he's right. As the appraiser mentioned, FHA loans are designed/intended for owner-occupied primary residence; it is assumed you will be living in one of the units. As such, no rent will be eligible for the unit in which you occupy.