All Forum Posts by: Paul Defngin

@Wagner Alcivar, sorry, if we were not clear.  If your girlfriend will be co-signing and also occupying with you then no problem.  If co-signing but NOT occupying, then you will need to put down 25% down-payment as @Andrew Postell mentioned.  It's the occupancy that will most likely matter to you most and how you proceed with your bank.  Hope that helps.  

@Jerryll Noorden, wow! I have nothing to offer, but admire your courage :-).  Good luck. 

Depends on what's important to you @Daniel Vieyra.  Getting a credit will reduce your cash outlay at settlement.  Reducing the price will lower your loan financing and lower your monthly payment - if you are financing.  This should give you a slightly better cash-flow.  Hope this helps.

@Wagner Alcivar, if your girlfriend will be occupying the property with you, then, you should have no problem but not as a non-occupying co-borrower.

Roy N. have you had any challenges getting hazard insurance for the properties that you rent out to students? Not your multi units rather your SFD? I had a client that purchased a house for his daughter near a major University in MD, and I remember him having difficulty getting reasonable price on the hazard insurance.

Mary Joe I am not an accountant but from my experience with other clients who owns properties in DC, they file their rental properties on their residing State Tax Return. They don’t file a DC tax return. If there is such a requirement I’m not aware that it exists. DC has one of the lowest property taxes - at least in the DMV area. The City only charges $0.85 per $100 in assessed value.

Stefano Bello ^

It's valid but it's also dependent on how much of the W2 and rental income you're changing to. Just remember this. W2 for lenders is easy to understand. Some lenders are not very versed in how to properly calculate rental income so make sure you find one that does. That said if your rental income is enough to sustain the current loans,and still give you positive cash flow to qualify for the new financing then by all means go for it. Let me know if you have any questions. I'm license in Florida, and would be happy to assist-as needed. Cheers,

Jordan Penor first, I commend you. You seem to be on your way to many great things. How many 19 years old is willing to put down 20% and try their hand on purchasing a home? Keep at it. Second, I'm willing to bet that you will get financing based on what you laid out. For the 1 tradeline - that is a lender overlay. While most FCU offer great rates, they can be conservative in some instances. So try another lender. Now for the 24 months employment history. From what you laid out it appears that you had worked a consecutive 1 year and 10 months of employment, but did you by any chance worked summer jobs, part-time jobs while in high school? If you did, perhaps you can piece that together with your 10 consecutive months to get your 24 months regardless of whether you had gaps in between. As long as the prior jobs can be verified and you explain any gaps in between, you should be able to get your 24 months employment history. Third, write a letter to your new lender of the compensating factors (not often used on conventional loans but can go a long way): great credit; 20% down; no debt; and owner occupied...I assume that this will be your primary residence, right? I don't know the term that you used here "house hack". Hopefully this helps get you into this house but if it doesn't know that you're only 2 months away from realizing your dream. Cheers and best of luck.

Ricardo Funk Hernandez if you have a lease on the recent property then your lender should discount it 25% and use that to offset the mortgage payment. So no need to have the 1 year. This is if they are selling to FNMA. FHLMC just came up with another update...I'll have to dig that up but one of the things that stuck with me was they'll discount the lease by 30% instead of 25% like FNMA. From October 2015 to just recently- both agencies used to be the same. However FHMLC recently sent out an update, and I believe they also clarified that they want to see landlord ship experience. Feel free to call me tomorrow if you need further assistance.