All Forum Posts by: Jesse Gonzalez

@Chris May

To answer your question on why rates go up for the additional units.  Its not necessarily that rates go up, but the cost is more for the higher unit count. So, instead of you coming out of pocket for the additional cost, points, the lender will often increase the rate to offset the increase in cost.  So, the cost remains the same, but the rate is higher.  Conversely, you could pay the increased cost and the rate would remain low.

I have an investor that does not have pricing adjustments for multi unit properties, even if you use the rental income, so they do exist.

@Mark Coppola

I'm a mortgage broker, I've been in the lending world for quite some time and can tell you that I had a base knowledge in mortgage and real estate when I started.  I began working for a large direct lender that had a 250K radio marketing budget monthly.  This company was a call center.  I spoke with as many as 10 new clients per day because the phone was ringing off the hook all the time.  There were thousands of unfunded leads that had come in over the years that I hit on the phone when I had down time.  We had in house underwriting and a very good support staff.  I made very good money as a top producer even though I was relatively new.  I would highly recommend others to get real world experience like I did, no book or written material can replace experience gained from the ground up.  

What you're referring to is a non warrantable condominium.  

There are multiple lenders out there that will do non warrantable condos, but you need to make sure that they will do the non warrantable because of the occupancy ratios.  Some condos are non warrantable because there is active litigation, etc. so just make sure you ask up front if they do non warrantable condominiums because of occupancy.  Also, some portfolio lenders will have issues with non warrantable condominiums so just be aware of that.  

Your rental income will be used to qualify, but I don't know anything about your situation so I don't know if its enough to qualify you for the loan amount you're looking at.  Fannie will let you use newly acquired rental property income, but they will only allow you to use 75% of the rental income since it doesn't reflect on the tax returns.  There's nothing that says you have to have two years of rental income in order to use it.  You may run into issues with some lenders because you don't have income other than the rental.  This snippet below is from the fannie mae selling guide regarding use of rental income.  You can follow the link to access the rental income caluclation worksheet.

https://www.fanniemae.com/content/guide_form/1037.xlsx

General Requirements for Documenting Rental Income

If a borrower has a history of renting the subject or another property, generally the rental income

will be reported on IRS Form 1040, Schedule E of the borrower’s personal tax returns or on

Rental Real Estate Income and Expenses of a Partnership or an S Corporation form (IRS Form

8825) of a business tax return. If the borrower does not have a history of renting the subject

property or if, in certain cases, the tax returns do not accurately reflect the ongoing income and

expenses of the property, the lender may be justified in using a fully executed current lease

agreement. Examples of scenarios that justify the use of a lease agreement are

occurred in the prior year that affected rental income).

@Chris Mason has a good idea.  You could do a cash out refinance, paying off one or some of the other mortgages and open up some room.  Portfolio lenders are very useful when you've hit the multiple financed property issue.  You can also look at 5+ unit properties that aren't affected by any of the max number of financed properties issue.  Find a commercial lender that will give you a blanket loan covering multiple properties, etc. 

Hey Christine, great to have you.  I'm in Santa Rosa.  There are a couple of very seasoned investors on here that are in Santa Rosa too.  

You should get with a broker who has multiple lenders to send your loan to.  The broker will be able to assess your loan and determine who would be the best fit based on that specific lender's underwriting criteria.   Believe it or not there can be a big difference from one lender to another.   Also, a broker will shop your loan for the best possible rate, different lenders price differently from day to day.

@Stone Jin

I'm reading your question as two different things.  I'm assuming that the properties are not held in a trust?  I'm also assuming that you are not jointly on title?  When you reference title transferring to your spouse upon your death that has nothing to do with who is obligated under the terms of the existing notes on those properties.  So, if title transfers to your spouse the loans are not automatically transferred to her.  I do know that general terms and language in notes and deeds of trust contain provisions for acceleration of the debt, unless it is prohibited by applicable law.  You should talk to an estate planning attorney and get everything in order with them.  

Are the mortgages assumable in the first place?  What do you mean when you say assume the mortgages, are you saying that she automatically becomes obligated on the note after your death?

Of course, here's the link to the request for cert of eligibility

cert of elig