All Forum Posts by: Sean Grapevine
Sean Grapevine has started 1 posts and replied 22 times.
Post: How soon can I get in a new FHA if I refi out the one I have now
- Roswell, GA
- Posts 22
- Votes 10
Originally posted by @Maurice Mugabo:
Thank you for your input. So you mean those 2 loans can be put in front of one lender at the same time, that actually would be good coz you wouldn't have to wait for the first FHA to clear out on the credit history in order to be able to get a new home. But one thing though, are you saying the credit wont be hit if you do both loans at the same time, or you mean the credit will be hit anyway but since I would have both of my loans done I wouldn't be worrying about anything (since I got what I wanted:).
For the lender, I talked to one on the phone and got a quote, but I haven't started the process coz I need to dig deeper for what is possible and also check that lender's services out. Just shopping I mean. There are many things to be lined up for me, first is, am checking my Home owner association, if I remember correctly the law, the community must be limiting the houses that are rented, need to check on this first.
Thank you all
Maurice, I simply mean that your credit will only be pulled once.
Post: Finance
- Roswell, GA
- Posts 22
- Votes 10
Can you use equity in one or a few of your homes to buy out the financing on another of your properties?
Post: How soon can I get in a new FHA if I refi out the one I have now
- Roswell, GA
- Posts 22
- Votes 10
Jaren,
I'm a broker here in Roswell. We do this all the time for folks. Let me know if you have any questions! If I were you I would work with one lender (which, I'm not going to lie, I would love to be that lender) and take both loans through the same lender at the same time. If you already have a lender, I would be thrilled to answer any questions you have!
Edited to add that you won't have to worry about the credit hit on your current place if you do both loans at once through the same lender.
Best,
Sean Grapevine
Post: 203K Loan & Fees?
- Roswell, GA
- Posts 22
- Votes 10
I'm a broker who does 203k loans. That looks reasonable. My guess is that the 203k fees are actually going to be substantially lower than that, but that your lender is over-disclosing so they won't be on the hook for overages.
Post: 1st Time Flip / Partner with GC?
- Roswell, GA
- Posts 22
- Votes 10
This is a question I ask myself all the time, 6 months... maybe 9 or 12 months of work for $40,000? And a huge risk? It sounds like you have pretty decent access to a 6 figure job. So do I. And there's literally 0 downside risk. I'm a mortgage broker, so there's a chance I won't make any money. But there's no chance I'll lose money. And there's a 98% chance I can make more than 40k in 6 months. Pretty dang close to a 100% chance I'll make more than that in a year.
Anyway, maybe this is more something for me to consider, but I have to wonder what our motivation is for flipping houses. Is it the freedom, the romance, the high-risk high-reward proposition? My job has a lot of freedom, so I'm not sure that that's it for me.
Anyway, my point is that I wouldn't risk $625,000 just to make $40,000 and also have to put up with having a partner in the mess. It sounds like you can just go out and work for 3-4 months and make $40,000 without risking anything...
Post: Homestyle Lenders in Chicagoland
- Roswell, GA
- Posts 22
- Votes 10
Hey guys! I'm a Homestyle lender here in GA, I'll see if I can find an experienced lender in Chicago for ya!
Post: How to overcome my DTI problem
- Roswell, GA
- Posts 22
- Votes 10
Originally posted by @Nick Burns:
@Sean GrapevineIn my experience, conventional lenders require property ownership for 2 years before factoring the income from that property into the borrower's DTI. So you are suggesting that you can do this prior to owning the property?
Nick, that's no longer the case, although not many people know that. Relevant part of Fannie guides: B3-3.1-08
| Rental History: No | Purchase | Form 1007 or Form 1025, as applicable, and
|
https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html
Post: How to overcome my DTI problem
- Roswell, GA
- Posts 22
- Votes 10
Post: Do lenders get greater incentives for certain types of loans?
- Roswell, GA
- Posts 22
- Votes 10
Originally posted by :
I am a newbie to all of this and my situation is pretty black and white. I have a car payment and a salary, that is all. Per consumer finance:
"To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out."
My only debt is a car payment of $560.00 of which I usually pay $800. Given this ratio, my calculation comes out to 9%. There is a possibility I'm not doing this correctly. I'm assuming my current rent is not included? If so, that calculation comes to 22.7%.
, yes I am looking into a multi-family property. Specifically a duplex for now.
@Kyle H. It seems I may have made a mistake in my calculation
@Zack Karp See my input above on my DTI.
Don't count your current rent payment. But you will have to count your proposed mortgage payment (including PMI, taxes, and HOI).
Post: How to overcome my DTI problem
- Roswell, GA
- Posts 22
- Votes 10
Hi there! I'm a mortgage broker here in Georgia. For all those wondering, here is the relevant portion of Fannie Mae guidelines B3-6-05:
"For all student loans, whether deferred, in forbearance, or in repayment (not deferred), the lender must use the greater of the following to determine the monthly payment to be used as the borrower’s recurring monthly debt obligation:
- 1% of the outstanding balance; or
- the actual documented payment (documented in the credit report, in documentation obtained from the student loan lender, or in documentation supplied by the borrower).
If the payment currently being made cannot be documented or verified, 1% of the outstanding balance must be used.
Exception: If the actual documented payment is less than 1% of the outstanding balance and it will fully amortize the loan with no payment adjustments, the lender may use the lower, fully-amortizing monthly payment to qualify the borrower."
Unfortunately, that is relatively new. Your broker isn't a moron, he's right.
However, he may be missing a key element here. Assuming you're getting an investment loan (min. down payment of 15%, which it looks like you have). He should order Fannie Mae form 1025 with your appraisal (https://www.fanniemae.com/content/guide_form/1025.pdf). On this form, the appraiser gives his opinion of the market rent of the subject property. You are then allowed to use 75% of that for qualifying income.
For example: If the appraiser estimates $1,600 in market rent, then per Fannie guides, you can use $1,200 towards your qualifying ratios. Since I imagine this property cash flows by a couple hundred bucks if you're interested in it, then the subject property should barely be making a dent in your ratios.
Let me know if you need anything or have any questions! It's not uncommon for an LO not to know about form 1025, so he or she may need a little prompting.
Best,
Sean Grapevine