All Forum Posts by: Upen Patel

@Macall Smith The max LTV you will get on a cash-out refi will depend on the type of loan - conventional, non-agency, bundled, etc. and seasoning.

For a conventional 30 yr fixed loan you can get max 75% LTV (1-unit) and 70% LTV (2-4 unit). Those are the agency guidelines. Some lender might choose to be more conservative then what agency will allow.

@Jessica N Sites You can certainly buy a 1-4 unit residential property using FHA 3.5% down, as long as you and the property meet the underwriting requirements. As Russell mentioned very hard to find a legal multi-unit on the NoVA side. Your best beat is in DC or MD.

@Chris Mason Thanks for the mention.

@Lenny B. Unless you are planning to buy in cash, you will need to an inspection so your contractor can provide the lender a detailed bid for the work that needs to be done.

Hi! @Milton Pouncy For conventional loans, the best LTV you will get on a 2-4 unit cash-out refi is 75% LTV even as owner occupied. Some non-agency programs might let you push to 85% LTV on an owner occupied. But no way you are going to get 85% LTV on an investment.

@Ana Coello if you are looking for a realtor that can find you that property then @Russell Brazil is your guy.

Hey! @Russell Brazil Thanks for the mention.

@Ana Coello As Russell stated, you want to find a lender that has competitive rates, is investor friendly and has access to many loan options. If you focus only on rate, you might be doing yourself disservice.

**** Moderator - Not promoting myself. Just giving the OP color on lenders. ****

@Russell Brazil Thanks for the mention.

@Charlene Isoh Adding to what Russell mentioned about FHA. For a 3-4 unit properties, FHA requires it to meet a self-sufficiency test. Given the higher prices in Metro DC and the recent rise in rates, it is very difficult to find a property that will pass that FHA test. Russell is a very knowledgeable realtor and investor himself. I would highly recommend you work with him, as he is great at finding those rough diamonds.

Let me know which area you are looking in and I can connect you to an agent if I have a relationship there.

@Gary Mittelman Welcome to BP.

The full post is not showing, so reposting.

For any recently originated FHA loan, the PMI is for the life of the loan if the original down payment is less then 10%. If the down payment is greater then 10% then the PMI would drop off after 11 yrs.

Even if this was a conventional loan and PMI could drop off, the general guideline is that the PMI will drop off when the LTV get to less then 80% based on the original amortization schedule. In other words paying down the loan. NOT based on market appreciation. If the loan has been open for a long time, then lenders are willing to reappraise to remove PMI.