All Forum Posts by: Upen Patel

Hey! @Darrick Lowe A few things to keep in mind:

* If your current PR is within 100 miles of the new PR, and doing an FHA loan, then you will not be able to use rental income from the current PR to qualify for FHA financing. You will need to be able to carry both the loans to qualify for the purchase.

* If you are moving just a short distance from the current PR and/or moving from a SFH to multi, then make sure you have very good explanation letter to convince the underwriter why they should approve this purchase as an owner occupied.

With regards to the financing options, I always prefer conventional, so PMI eventually drops off. But you will not qualify for a 5% down Freddie loan, since you already have an another property.

@Ross Yeager With a cash purchase, you can do a delayed cash-out refi without needing any seasoning. You will be limited to the lower of: Allowed LTV based on new appraisal OR purchase price + closing cost. None of the money you put into the rehab can come out.

If you are getting a significant bump in value and want to do a cash-out refi, then you need 6 month seasoning for conventional loan, or 3 month for a portfolio loan. With conventional the title is always in your name. With portfolio title can be in your name or an entity.

Keep in mind that seasoning doesn't mean that you have to wait that long to start the loan process. The loan process can start well in advance. You just can't close until the seasoning period has been meet.

Hope this help in clarifying your options.

@Wilson Rith With a 3-unit you have a better chance to having most of your mortgage covered. Also, it leaves the door open for you moving "up" to an owner occupied 2-unit down the road.

@ANTHONY SPOLIZINO You can only have 1 FHA loan at any given time. Per your post, looks like you already have an FHA loan. So you can't get an another one.

Hi! @Ron Willbanks You are in TX. Are you looking to do a cash-out refi on your primary residence? As you might be well aware, TX has strict regulations against cash-out on primary residence. Be sure your lender is competent and knows what they are doing. Most done and you will just end up throwing money away on appraisal.

@Andrew P. Your options are residential portfolio (30 yr fixed, no limit on the # of financed properties) OR commercial (typically 20-25 amortization, with 5-7 yr ARM/Balloon).

@Antonio Jimenez Thank you for your service.

I would recommend you reach out to @Max T.. He knows his stuff as a realtor and investor.

@Jonathan Peters Since you are buying the NYC condo as owner occupied, you can do that with just 5% down. Seams like you already have that. So why are you doing a cash-out refi? Unless your DTI doesn't work with your student loans and MI on the new house, I would recommend not doing the cash-out and do a low down payment of the condo purchase. Of course your current lender loves that you are doing the two loans, but does make sense of you?

@Brandon Hunsaker Before you go into this, make sure that you can legally convert the SFH into a duplex, because that's what you are proposing. If it all makes sense, then you have two options - FHA 203(k) and Fannie HomeStyle Renovation. Both are available for owner occupied rehab properties. Fannie is the better version as it's easier to work with and will allow you to do things that FHA will not.

Hey! @Aakash Patel If you are going to do rehab, then delayed refi might not be the best option. Delayed refi loan amount is based on the lower of cash-out refi LTV OR purchase price. Any money you put into the rehab can't be included into the purchase price.

If you are expecting a decent equity bump then you will need to wait for a 6 month seasoning.