All Forum Posts by: Jesse Gonzalez

Sounds like your place is not legally two units, therefore the full kitchen would make the home a non permitted two unit property.  Taking out the stove is the simple fix for that issue.

I'm a mortgage broker and I speak from experience saying that not all banks/lenders have the same lending criteria so I'd try to find a broker and ask about loan options just as @Bill Gulley  recommended.  If there's enough equity in the home maybe its possible for her to sell the house to a relative, gift the relative the equity in the property so that the relative doesn't have to come up with a down payment and then that relative qualifies for a new loan to pay off your existing financing.  That's another route I'd investigate.  

I don't see any issues with what you state in the post, here is what the fannie mae guide states regarding your question.

"Note: 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 listed above are met. Additional restrictions apply. See B2-2-03, Multiple

Financed Properties for the Same Borrower."

Shoot me a PM with details and I can speak specifically to your situation if you'd prefer.

What do you mean when you say he's "giving you a hard time"?  Is he not giving you value for the second unit?  It is possible the original appraisal when you purchased the property left the kitchen out and did not give you credit for it.  Its hard to say what the appraiser is having issues with because I don't know the lender involved.  I'll tell you that typically, on a fannie/freddie loan they don't care if the unit or square footage is not permitted, as long as its completed in a workmanlike manner they won't give you a hard time.  If it is not permitted then they won't give you value for the added square footage, but I don't know what your particular investors criteria is.  If you could give more details I may be able to help you more. 

@Matt M. One other thing, I'm happy to talk to your brother if he's interested in a little more info specific to his situation. PM me and i'll get you my number.

@Matt M. That's a hard question to answer, there's a lot there to address.  The business is very satisfying and extremely frustrating at the same time.  Regulations are in any business, especially one dealing with people's money and also the fact that it was partly to blame for the great recession.   You just need to be able to adapt and adjust as they make new rules.  Having said that, you can make a lot of money, provide for your family, help people plan financially, and meet a lot of cool people.  It takes a lot of hard work to be successful, but you'll get a lot out of it dependent upon the work you put in.  

1) Moving half the portfolio into a corporation (s?), might have tax consequences.

This wouldn't accomplish what you're trying to do if the existing financing is in your name on these properties.  If the corporation owns the property, but the financing is in your name then you'll still be subject to the property limitations.

2) Paying off a few loans and consolidating loans with the same private lenders into one loan to create a perspective of no more than the 10 total loans. (we aren't sure if the rule is loans or financed properties)

These limitations apply to the total number of properties financed, not to the number of mortgages on the property or the number of mortgages sold to Fannie Mae.

I agree with @Albert Bui and his first suggestion, that's a very good idea.  Also, your third option is the best.

Typically you'll see the adjustments capped if that's what you're asking. One portfolio lender I work with has the adjustment caps as follows, 2/2/6. This means the rate can adjust the first time no more than 2%, it can then adjust 2% at each adjustment period thereafter, and adjust up to a maximum of 6% over the start over the entirety of the loan life. You're question is hard to answer really, the margin you agree to take up front will determine whether or not your adjusted rate is "competitive" with the market. If you take the highest margin up front in order to get your loan costs lower than taking a lower margin then you'll most likely not be competetive with the market and then it's up to you to decide if you want to go through the refinance process again. To go into an ARM assuming that you'll be able to refinance at the adjustment period is a risky proposition in my opinion, but if that's your only alternative because you're maxed on fixed rates then I'd say its a good risk to take. Just my two cents.

@Jordan Thibodeau pretty much nailed it, they'll have the documentation to back up their experiences. There are also short sale certifications that an agent can get, but those don't speak to real world experience necessarily. You want somebody who is very much detail oriented.

@Bill Gulley Holy smokes man, that was a good one. I can't really add much to what Bill just said, but I'll say that I'm a mortgage broker in california and I started out working for a direct lender in a call center environment. It was the best thing for my career because I learned how to read guidelines, how lenders work, spoke directly with underwriters, learned how the secondary market affects origination, basically everything there is to know about doing loans. I was also taught how to sell loans which is a whole added issue if you've never done it before. Another benefit to working for the direct lender is that they did A LOT of radio advertising, and as a result I was able to speak with as many as 10 new potential clients each day and I became a top producer and performed a career's worth of loans in the span of a few years.