All Forum Posts by: Kevin Romines

You can use the WA State Bond program where they will give you enough to cover the down payment and a small amount left over to help with closing costs. You can also negotiate that the seller pay your closing costs. You will need to make a very very strong offer when asking the seller to pay the closing costs, but its doable and my buyers get their offers accepted all the time when doing this. So don't let someone tell you, you can't get this done. You can!!!

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She can get an FHA loan on 1-4 units and you can be on the loan as a Non-Occupant Co-Borrower to help with the income and the debt ratio. Because she will be collecting rents on the other 1-3 units, she can immediately count them to help her qualify for a higher purchase price. When the loan is closed, she will be able to live close to rent free or possibly with a little monthly cash flow. She can refinance it into her own name once she has enough income (also counting the rents) and the Loan to Value is at the correct level to get rid of PMI, 20% equity or more.

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Try https://www.biggerpockets.com/...

Natalie is an expert in this field. 

I'm not sure if Oklahoma is a Title state or an Attorney state? That said, call your local title office and pose the question to them, they are experts in these matters and can easily explain the difference between the 2 and will steer you in the correct direction. Best of all, all for free!!!

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If it were me, I would buy up to 10 properties in your personal name, then switch to buying using a Non-QM loan which will allow you to buy in your personal name or an entity and will not have any restrictions on the number of financed properties you can have. Fannie Mae and Freddie Mac have the 10 finance property rule, Non-QM doesn't have a rule. 

You want the advantage of the lower rates that you can get with Fannie and Freddie. Fannie also allows you to transfer the title to an LLC after closing without it violating the Due on Sale clause of the contract.

Regarding tax advantages, I would recommend you talk with your CPA. Most rental properties will show up on a person's schedule E and all revenue minus all expenses will result in either a profit or a loss which will then translate to your personal income. Commercial loans on properties where there isn't a personal guarantee will not count in the 10 financed properties rules and will be somewhat easier for a loan officer and underwriter to deal with, but in the end, from a lending standpoint it really doesn't matter, it's all workable for the loan officer and underwriter that has the proper experience working with borrowers that have multiple rentals. 

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You are referring equity based lending. This is typically a Hard Money loan or a Fix n Flip loan. I can steer you in the correct direction depending what you are wanting to do? Rehab, Cash out???? What are you hoping to do?

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Just a comment regarding differences in some DSCR programs. There are DSCR programs that will allow the use of a higher existing lease so long as you can show receipt of the rents for the last 3 months as well as a copy of the original deposit. This could make the difference regarding qualifying for a loan.

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The question is, has any of the Mfg. homes been de-titled and made a part of the land in the form of a deed? If not, then they are all considered personal property. If they have been de-titled and made a part of the land as a deed, then they are considered real estate. Depending on that answer, you may be able to take the loan as a commercial loan. I would check with local credit unions for financing?

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What makes them so unique that that you think a lender will not or can not do a cash out refinance on them? Is it due to a rehab that would need to be done, or how you took title? I'm curious as to the answer to that question?

Once you are on title, to get a cash out refinance you will have to wait 6 months on a conventional Fannie Mae or Freddie Mac loan. However, there are Non-QM loans that allow cash out at 4 months seasoning on title. 

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