All Forum Posts by: Paul Cordero

You can move whenever you want to and don't need to refinance.

The lender can't control when you move. However, you may have some issues getting another FHA loan or FHA refinance if you are still in the FHA required owner occupied period.

You should have no problem refinancing with a conventional loan, or getting a new conventional loan. You will just have higher rates as an investment property for the refi.

I am pretty sure that lenders can pursue deficiency balances via deficiency judgement in Nevada, but I could be wrong.

So your only risk is the lender foreclosing on the collateral property, and then pursuing you for any deficiency balance once liquidated.

They cannot pursue your other assets as far as I know. This may very from state to state.

In my opinion, your best bet is to develop a relationship with a seasoned mortgage banker who can accomodate your needs. Someone who will give you personalized attention and service and will keep you informed every step of the way.

It sounds like you are dealing with unreasonable sellers. Why would a lender put an address on a pre-approval letter without having an executed purchase contract? The pre-approval is for a certain loan amount, not a particular house.

It sounds like the sellers you are dealing with are banks (short sales). They may be getting a lot of bogus pre-approval letters that some loan officer just types up on company letter head which is basically as good as toilet paper. Why does adding an address make them feel better?

ALso,there is no "Easiest" Conventional lender to work with. Your responses are going to be all a matter of personal experience/opinion.

Try business banking, or a commercial LOC with whoever you currently have a banking relationship with.

Most lenders won't let you have an ARM adjustment in the same year as your interest only to fully amortized adjustment. For instance, if you get a 5/1 ARM IO the first 120 months is interest only no matter what the market rate adjusts to after the initial fixed 5 year period.

My advice to my clients is that you should only do IO with more than 25% equity and in an appreciating market. You should also have a short term goal to refinance or sell the property. If you are cashflowing enough with an I/O over a fully amortized loan, then take that money and earn higher interest than what you are paying.

Is the W2 income the only other income/loss that shows on your 1040?

If so, your calculations above are correct.

Angie,

It would depend on what kind of business the S-Corp is.

Is it for Real Estate, or non-RE?

If non-RE, the loss in box 1 of the K1 (1120 S) would get subtracted from your bottom line income on the first page of the 1040.

All valid income sources on pg. 1 of the 1040 would be added together (losses subjtracted out), then that number would get divided by 12.

Connect with me if you have more questions. Other banks might do it differently.

God Bless,

Do yourself and everyone involved in the transaction a favor and get pre-approved. This way you aren't wasting anyone's time. As David said, the pre-approval process is much more in-depth, but it will also be a better indicator for final loan approval.

Dawn, they have this, its called a mortgage broker, j/k

The problem with a registry is keeping it updated as guidelines change daily. Most banks sell their conforming loans to Fannie & Freddie, so their guidelines are interpretations of Fannie & Freddie's.

But guidelines are not the end all be all of lending decisions. They are like the center line on the road that keep you in the lane and going in the right direction. Every now and again you have to go off roading :)

My point is that most banks make exceptions if the deal makes sense.