All Forum Posts by: Michael Dunn

Good Morning,

I have a quick question please regarding doing a Cash-Out refi. on my Primary

The thing is, is that I just purchased the property 6 months ago. So given this , can I even do a Cash-Out refi . ? And if so, will the LTV be lower ( 70% - 75% ) vs say 80% , given that it's only been 6 months of Seasoning vs 1 year ?

Thanks so much 

Great question John 

thank you Edward .... 90% doesn't sound bad at all  :)

I just got off the phone earlier today , with talking to 4 different Lenders.

For some reason, I still fell as though I did Not get a clear cut answer question, as to how soon I could get a HELOC on my Primary residence.

My Situation is ....... I have around $40,000 in equity on the property, but I have only owned the property for roughly 4 months.  

So doing a Cash-Out refi. isn't possible ( What I was told ) as you have to wait 1 year on a Primary before you can do a Cash-Out refi.

So then can I go ahead and do a HELOC ? And if so, what LTV can I expect to get, as I have only owned my Primary for roughly 4 months ?

Thanks so much 

Just a few quick question please, regarding this type of Loan .

1. It shows 3% down payment for Investment properties, BUT you pay PMI

or you put 20% down , and pay NO PMI .

That's a 17% difference in Down Payment requirements..... Depending on your financial ( Cash In hand circumstance ) ..... May be best to opt for the 3% own and pay the PMI ?

2.  How soon an you Refinance  ( Cash-Out ) ?  Is it after the 6 month time frame , that all the Renovations must be completed by ?

3. What LTV ratio is used on the ARV ..... 75% or 80% for Investment properties ?

4. How man Properties can you have Financed using this HomeStyle Renovation Loan ( and purchasing them ALL as Investment properties ) ?  I have heard 4 properties max, but I have also head 10 properties ?

5.  And it shows they do offer a  " Do it Yourself "  Renovation option.  What are the stipulations with this ?  I myself , and my dad are both Contractors .  So long as we can show and prove to the Lender that we have the skills and ability to perform any and all renovations .,,,,, Would they allow us to technically do all of the required work ? 

Thank you for the help. 

I'm going through and weighing my options on how to best purchase my first Investment property. I purchased my Primary residence back in December of 2015 using an FHA loan, so that option i currently un-Available.... And this Renovation loan through Fannie Mae seems to be my best bet, yes ?

Thanks again 

Thank you Lydia

Good Evening,

I cant ind much information online , regading purchasing a Property listed on the HomePath website as n Investor, and therefore wanted to get fellow BP members help

A quick rundown of my situation ...... I am wanting to buy a Distressed Property

My All In price on the Property will be $75,000 - $80,000  ( Assumes $35,000 purchase price $35,000 for repairs, and roughly $5,000 for two sets of Closing costs )

The property should appraise for $110,000

I am looking to do a Cash Out refi. and or HELOC on My Primary at an 80% LTV , which should give me $20,000 cash in hand

The problem is , is that I purchased my Primary Residence back in 2015 using an FHA loan, so I can't use a FHA gain so soon , and therefore I am looking at all of my other options ...... which brings me o looking at HomePath as either, a way to Finance this property ( if you can even get Financing for a property that is NOT listed on their website/Through them ) OR maybe just find a great deal on a Property that IS listed on their website , since you can Finance the Repairs into the Loan , since this is a big part of the problem I am running into in wanting to purchase this distressed property that I have found ( needing $35,000 in repairs )

Just needing some help on purchasing through HomePath , and how they work regarding buying a Property as an Investor , AND also  how the Repairs are factored into the Loan through them .

Or maybe theirs a Better way out there in being able to get this Distressed property that I am wanting ...... Since all I will have is $20,000 in cash at my disposal ...... Maybe get a.... 1  Purchase Money Loan  and  2.  a Construction Loan through a regular bank ? 

Thanks so much for any and all help  

Thank you John, I'll forward it to him  :)

I'm considering using Seller Financing on a  property, due to  ...... The fact that It needs $35,000 of repairs  ( of which I do no have the cash to buy the Property outright AND pay for this amount in repair )    

So I am looking at Seller Financing ( if I can't find a Portfolio Lender to incorporate the costs for the Repairs into the Loan as a whole

The property(s) I am looking at, all are distressed and from what I can tell, have been sitting for a year or more.

If I can get these properties for $20,000 - $25,000 , I could afford that ( since I will be doing a Cash-Out refi on my primamry for around $25,000 ) BUT, if the bank would then only loan me 80% LTV on that $25,000 for the Repairs .... That would only give me $20,000 for the repairs, thus I'd be $15,000 short '

So this has lead me to look into Seller-Financing .

If I understand t correctly...... Say The seller is willing to sell me the Property for $30,000 , plus them knowing that $35,000 will also e needed to repair and renovate the property.  They would act as the Bank , and likely charge me 6% interest , 5% down payment and do this on say a 2 year basis.  By Which I would repair the property and Refinance it before the 2 years.

My Question is ..... How would I still get the needed $35,000 for the Repairs, if I was to do Seller-Financing ?  Given that coming up with this money is my biggest Hurdle .

If they were to agree to ell me the property for $35,000  ......  Could I borrow against that $35,000 ..... $35,000 ?

The ARV of the property is likely to come in around $110,000 and at a 80% LTV , that puts it at $88,000

With a $35,000 purchase price  +  $35,000 in repairs  +  $5,000  for TWO sets of Closing costs ...... I am staying Under the $88,000 for when I go to Refinance

Anyways, I'm trying to figure out what my options are to purchase this property , and need some advice / guidance on how to best secure the deal ...... Mainly coming up with the $35,000 for the repairs

Thanks so much 

I have a question please, regarding on whether I can purchase JUST the property itsle fin Cash, and then Borrow against the House .... The costs to Renovate the property. And then when the Renovations are complete, do a Cash-Out refi. at a LTV of 80% of the ARV?/

Example:

If I purchase JUST the property ( $40,000 ) all in ash , could I then borrow " Against " the property , the $30,000 - $35,000 ) that would be needed for the renovation work ? Then once the renovations are done, you Do a Cash-Out refi. at a LTV of 80% of the ARV of the property ..... Use the Cash from the refi. to then again purchase a property for the $35,000 - $40,000 range , borrow the amount needed for the renovations against the roperty, cash-out refi, once the renovations are done at a LTV of 80% based on the ARV of the property..... Wash, rinse, repeat ?

Thanks much