All Forum Posts by: Michael Masters

Thanks for the quick answer Tom. 

I plan on using both a substantial HELOC as well as a commercial loan (likely Freddie Mac or Fannie Mae) to purchase a multifamily.

Ballpark, I'm looking at the following:

$4.5M = Purchase Price

Funded with:

$1.5M = Cash & Investments to be Sold

$0.5M = HELOC

$2.5M = Commercial Loan

My question is whether or not Freddie Mac would include the monthly payment on the HELOC in the calculation of my DSCR ratio. Secondly, if they do, would I be better off taking out the HELOC 3 months early to "age" it in my investment accounts that way the HELOC loan is not considered as funds used for the purchase, but rather just an already existing loan on my primary residence.

Thoughts?

TD in the end process of acquiring Scottrade this month, that may be causing unusual delays/distractions.  It literally just closed the deal this week.

Congrats Christopher.  I just broke into the market myself with a multifamily in the North End which closed in July!  Here's hoping we both have good luck in our new ventures.