All Forum Posts by: Michael Cohen

Originally posted by @Chris Breezy:

@Michael Cohen I was told I can get 3.6 percent compared to fha which would around 4.0

There's no way your interest rate is going to be 3.6% nowadays. Or even 4%. For a 30yr fixed 3.5% down multiunit (assuming 740+ credit) you're looking at around 4.5% to 4.75% depending on the market when you lock.  If you're score is less than 740, assume a higher interest rate.   The only way to get interest-rate anywhere near that point right now for what you're looking to do, is to pay a lot in points. Have you seen any sort of closing cost estimate?

 I don't know the whole situation,  and it's possible there was just some simple miscommunication, but I'm concerned over what you're saying. I strongly urge you to connect with a few other lenders. 

You might not be paying MI/PMI per se, but you're paying for it by way of a higher interest rate. It's called Lender-paid MI (LPMI.) Compare 2 or 3 lenders to see what your total costs and APR would be.

Go speak with a qualified local lender. It's his/her job to help walk you through the costs so that you can make an informed decision.

Originally posted by @Account Closed:

There has to be a more creative answer than this. What about with non-traditional lenders like private equity, online lenders, or credit unions?

David - what you are suggesting is actually Mortgage Fraud. There are no "creative answers." Either your income is derived from 1099 or it's not. There is absolutely no grey area here. 

Hi @Devyn Grillo in the world of traditional mortgages/lending, if it's not an owner-occupied primary residence, you're looking at 20% down payment. Same for any standard HML/PML. To echo Christopher, look at Subject To or Seller Financing.

@Chris Breezy A credit pull is required for any reliable preapproval, otherwise, nothing is reliable. "I have great credit; I swear." And as @Christopher Phillips stated, the effect of a single pull on your score is absolutely nominal. It's not going to be the difference between being approved for a loan or not. Or even a rate of 4.5% vs 4.625%.

According to every credit expert I've spoken with, inquiries are irrelevant. MyFICO.com agrees: http://www.myfico.com/credit-education/whats-in-your-credit-score/ 

VA IRRRL is an interest rate reduction refi. If you're looking to go from an FHA loan to a VA loan, it's a whole new mortgage.

Good rule to weed out the slime bags: ask them what their rates are, or what your rate would be. If they give you any number whatsoever, walk away.

@Kendall Short - There is nothing wrong with a commission-based job from a lending perspective, per se. However, a conventional lender will need to average the last 24 months income to determine your qualifying monthly income. So if you've been on that job for less than 2 years, you would be ineligible for a conventional loan. 

A job offer letter is only usable when it's a w2 hourly or salary based employment, not commission based, as there is no way. Future/projected rental income can be used as qualifying income.  If you have no history of rental income (i.e. do not have 2-year history of claiming rental income on your tax returns) then lenders would use 70% of the rent as qualifying income.

Originally posted by @Kevin Romines:

@Luis Vilar You are not allowed to have a non-occupant co-borrower on an FHA loan, so the only way you can get help is by way of a gift. However on a Conventional loan i.e. Fannie Mae or Freddie Mac, you are allowed to have a non-occupant co-borrower, or you can still get a gift? Just some of the ways to cover the shortfall for the down payment.

FHA loans do allow for a non-occupant co-borrower.