All Forum Posts by: Robert Bowles

@Wayne Brooks is correct you can always have the fees paid by raising the interest rate.  You can also have all the costs of the refinance added to the payoff amount, so nothing out of your pocket, but that will lower your cash back.

Ultimately everyone needs to get paid for doing their jobs: title, lender, appraiser etc.

A lot of tittle companies offer a discount if you had your title work done by them previously (I find 2 years is average).  You also should contact your current servicer sometimes they will waive a fee to keep you....but since this is a cash out I assume they will require everything to be redone.

Your best bet is to ask and shop around to keep your costs low.  Then look at the total costs of higher interest rate and/or adding to the principle and see where your breakeven is.

Good Luck   

@Dakota Mivshek you will running into problems with the downpayment funds being lent by your mother.  The funds will have to be a gift in order for you to use them, or at least be able to show that the minimum downpayment is coming from an account of yours.

As you go through the underwriting process you will be asked to show where the funds come from.  It would be best for you to talk to your lender before you go to far to make sure it does not become an issue.

As to the market you can always find something...the issue is how long you need to look.  As a few people have said work with a realtor that works with investment properties (hopefully owns them, not just sell them) and start the hunt.

Feel free to contact me anytime if there is anything I can help with.

Those are the banks restrictions.  From the current FNME Selling Guide.

If the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of properties that the borrower can currently be financing.  If the mortgage is secured by a second home or an investment property, the borrower may own or be obligated on up to ten financed properties (including his or her principal residence).

Look into Delayed Financing Exceptions when looking at cash-out refinances, there are a few things that will affect your ability to pull equity out. Investor and second home borrowers with five to ten financed properties are ineligible for cash-out refinance transactions unless all of the delayed financing exception requirements are met.

Most lenders do not link the LTV to the number of properties you have. Your DTI will be the bigger issue.

FNME will not lend to LLC's, but there are lenders out there that will.

Talk to a broker or two that uses multiple lenders...and hopefully invests in property themselves.

FHA will allow your commission to be used as as your downpayment.

I have helped a few Realtors I work with use it, in Oregon.

Check with your local brokers to check with their AE's.  Especially those that do not have many overlays.  

http://portal.hud.gov/hudportal/documents/huddoc?i...

4155.1 5.B.6.d

If the borrower is a licensed real estate agent entitled to a real estate commission from the sale of the property being purchased, then he/she may use that amount for the cash investment, with no adjustment to the maximum mortgage required. 

Send me a message and I will give you the lender I use.

If you are retired the lender will look at the income from your pension as well as investments to qualify you for a loan the same as if you were at a w-2 job.  There really is no difference to a lender.  That is for a conventional loan.

Hard money lenders will have their own qualifications.  

You might also go to smaller local banks and credit unions to start the hunt for a business line of credit.  The will want to see the track record, but it never hurts to start early.

I have purchased 2 properties there.  The first closed in March 2013 and the second in June 2014.  Both required lots of work and one is a mountain rental the other a rental in Portland.

They both worked out really well for me.  That being said their site now shows sales happening in the area, not only properties they are selling, so I have not been too impressed lately.  As @Dana Whicker said, I think the market really seems to matter.  I have been looking in another state and it is not as cluttered and the deals seem better.

Their purchasing process was a little maddening, but I was not in any hurry for both properties.  It was difficult to talk to anyone when they went over their contract dates and then all of a sudden they want to sign today.  It was not an issue for me, but it was a little stressful.

Other than that it is just waiting for the right deal of you.

You will need to find a lender that does not have overlays. FHA will allow the 4 plex to be purchased.

Keep calling online lenders or call a broker. 

@Nate Lindquist Upen is correct if you can do a cash-out refi you will get the best rates. 

Most of the NOO portfolio lenders I am currently seeing are looking for multiple property blanket loans. I know of at least one that will do a single home refi to 70%, stated income.

I have not used them in the past, but they keep trying to get into our office. Happy to discuss your plans and see if I can help.

You might also want to look at FannieMae's HomeStyle loans. Works the same as the 203k except you can us it to purchase investment properties. The down payment is closer to conforming loans (5% owner occ, 15% investment, 10% second home), but if you have the down payment it saves you the upfront MIP and if you plan on keeping the property you can get rid of MI, unlike FHA, without refinancing.

I have done a few of each and from my side they both took the same time and effort.  Just another little used loan that borrowers can use, especially for buy and hold types (like me).

The clip you show was cut and pasted from FHA guidelines, it was not written by me. I should have italicized the guidelines.

As you probably know guidelines sometime contradict themselves.