All Forum Posts by: Stephen Chittenden

Originally posted by @Zack Karp:

@Stephen Chittenden

Ahhh...that's the catch. Higher rate for the added risk of the higher LTV and no MI.

Still a great product if you don't have more than 5% to put down at that price point.

If you had 10% to put down, I would be in the mid's 3's for the rate with no points.  So it makes sense they would be at 5% with no competition for that product.

Best of luck!

I figure there is a somewhat higher rate, although mid-3s is lower than I've seen most advertising with 10% down.

Originally posted by @Zack Karp:

@Stephen Chittenden

That's a really great product.  I don't think you will find anything better out there for 800K purchase with less out of pocket.  I have lenders that can do 5% down up to 650K loan amount, but NASA is the only place I know of that goes above 650K with 5% down.

How is the rate?  I would imagine with no MI, they are a little higher.  Maybe some points as well?

 The rate they offered was 5% with -.25 points (so a credit against closing). Maybe a little high, but it seemed pretty good. 

Originally posted by @Russell Brazil:

Originally posted by @Stephen Chittenden:

Originally posted by @Russell Brazil:

Im pretty sure both the local lenders I work with are going to tell you you need 25% down.

Thanks, anyway. I have a credit union that will do 95% LTV with no PMI, so that may be our best bet. It's the enormous closing costs that are the real killer.

 That is an insanely good deal.  I would jump all over that. What credit union is it?

NASA FCU. They offer 100% financing to $650k and 95% to $850k for primary residence purchases. Max LTVs are 5 percentage points lower for refinances. No PMI required in either case.

Originally posted by @Russell Brazil:

Im pretty sure both the local lenders I work with are going to tell you you need 25% down.

Thanks, anyway. I have a credit union that will do 95% LTV with no PMI, so that may be our best bet. It's the enormous closing costs that are the real killer.

Originally posted by @Russell Brazil:

what LTV are you looking for? Purchase, refi, cash out refi?

 Purchase. Our issue is coming up with a down payment plus closing costs.  The home is listed for right at $800k.  I'm trying to see what the options are that would allow us to come to closing with as little cash as possible.

About $800k. 

Originally posted by @Shaun Weekes:

Good Evening,

What is the value of your property.

Slightly off topic, but I know there are a lot here who might have useful knowledge. Anyone have experience with high LTV loans for personal primary residences in the 800k range? I'm looking for someone who lends in MD.

Slightly off topic, but I know there are a lot here who might have useful knowledge. Anyone have experience with high LTV loans for personal primary residences in the 800k range? I'm looking for someone who lends in MD.

FYI, I am president of my HOA. We looked into grading some common area, prepping it, and installing a smallish piece of playground equipment. The cost was over six figures. Non-personal equipment that is designed to minimize liability is extremely expensive. I have a hard time seeing how the cost could be worth it. (Also, the recommended minimum clearance for equipment is much larger than you would expect, so it will take up a large amount of space.)

Originally posted by @Tim Mensch:

@Stephen Chittenden

Stephen, Was the 23k you invested gained back with the cash out refinance? For my particular situation, I could borrow money from a relative (along with some of my savings) for the down payment/closing for the original loan for the purchase/repair. That loan total would be 170,000 (purchase/repairs) on a house with an ARV of 230,000. Could I then cash out refinance for around 200,000 in order to give my relative his investment back along with extra money for his interest and a down payment for the next rental property? The new 200,000 loan would still produce a cash flowing rental. Thanks for both of your answers, I'm just a little confused on the whole cash out refinance process.

No. The $23k is the amount we could not get back out when we financed the property. We spent $169k (roughly) and although the house was worth $205k, the credit union would only finance it at 75% LTV. That left us with a loan of $153,750. There was then another $7k or so in escrow prepays and closing costs. That left us with about $146k in loan proceeds. The $23k is the difference between the amount we spent and the amount we got in cash-out financing.

In your case, IF the home appraised at $230k, we would not have been able to get a loan for more than $173k (roughly). After closing costs, that would get you down to about $167k or so in loan proceeds against a cost of $200k, leaving about $33k trapped in the property. You might be able to find someone to finance at more than 75% LTV and reduce the amount of trapped cash depending upon your circumstances, but it may not be easy.