All Forum Posts by: Ryan D

Thanks for the insight... What would be the benefit of using the bank who originated the loan? Are you saying by going with them, they would require less as a down payment in exchange for a performing asset? Any suggestions on how to find their bottom line price?

A duplex 2 doors down from me went on the market a few weeks ago. It's currently bank owned and the asking price is $74,500. From the outside, this is one of the nicest properties on the street. I talked to the lady who used to live there (before the bank took it over) who said it needed some minor plumbing work. She said her unit was renting for $600 and the other was renting for $800. She also mentioned that it was master-metered and the property owner pays all utilities. This worries me, but I think if I can get it for around $50K it would be a good investment. Any thoughts on how the bank might react to such an offer? Is it worth pursuing? Also, does anyone have any suggestions for "creative" financing? From what I understand the new standard for loaning on investment properties is 20% down with 6 months of reserves. Just trying to get brainstorm here. Any insight would be appreciated.

Thanks everyone for the feedback and related articles. Jon, thanks for the info on the draw period. I wasn't quite sure how that worked as the company selling the idea of the HELOC didn't get into too much detail. Seems like the 3K they want to get everything started might not be worth it.

This is slightly off topic, but aside from throwing extra cash at the mortgage, does anyone have any opinions on life insurance? Similar to a HELOC the extra cash would be liquid. Not to mention tax free and would earn more than cash in a traditional savings account.

yeah that is a concern of mine too. at the same time, the interest rate is based on the loan balance which is being depleted very quickly. i'm really exploring my options and trying my best to think differently during these turbulent times.

Does anyone have experience using a HELOC to pay off a mortgage early? I just bought my first property and had never heard of such a concept until I was recently listening to the Real Estate Guys Podcast. I've been listening to them for years and have a decent amount of trust/respect for them. This company and the concept seems legit. Any thoughts?

http://www.truthinequity.com/

I have never heard of a USDA loan before but seeing as I am looking in the Pittsburgh area, I am assuming I would not qualify for this type of loan? From what I have read (which isn't much) it seems like these loans are for properties in rural areas.

Hey all, thanks for the feedback... So it seems like the 2 loan types are more similar than what I had originally thought (with a few more hoops to jump through for an FHA). My main question now would be in the long run is a conventional loan the cheaper option? It seems that since I have good credit and can afford the 10% down it would be easier/more cost efficient in the long run to go with a conventional loan?

Valerie thanks for the insight. I didn't realize that the seller assist was the same in both situations. And both have MIP charges, I didn't realize that either. I am looking at several properties and wanted to get some peoples opinions in financing. It seems a lot of people recommend conventional over FHA.

I'm hoping to get some people's opinions on FHA vs. Conventional Loans. It seems that in the long run (assuming one can afford the higher down payment, closing costs,etc.), it is better to get a conventional loan? How much seller assist does a typical conventional loan allow for (compared to the 6% with an FHA)? I don't think conventional loans require a MIP fee at closing and a monthly MIP payment right? From what I understand that is the main difference between the 2 types of financing. Any feedback/recommendations is welcome. Thanks!

That is true. I have been looking but not too serious. I feel like I have the upper hand on this one. Of course if it gets swept right out from under me I will have wished I did things differently.