All Forum Posts by: Stephanie P.
Stephanie P. has started 186 posts and replied 4622 times.
Post: Travel Nurse Friendly Lending Options
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
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- Votes 2,759
Quote from @Josh Meadows:
Hi,
My wife and I are currently shopping the market for a primary residence that we could add value to and then later cash out refinance as well as finding a lender to help us accomplish this. I have run into DTI issues in the past with lenders because they don't/won't work with stipend pay from the government even though it's signed by both parties in an agreed upon contract for an agreed upon time. For example... Let's say I am paid a net of $2068 weekly. My pay stub would reflect that I am paid $28 an hour for 36 hours for a taxable gross of $1008. The other untaxed portion on my pay stub given by the government (according to the GSA.GOV website) for a meals and housing stipend equal out to $1060. Do you guys happen to know of any lenders that work with this type of mixed stipend/taxable income?
Thanks,
Josh Meadows RN
Hey Josh
DSCR loans would be your easiest option. We've closed loans for travel nurses all over the country and it's just easier instead of explaining how your stipend breaks down.
PM me if you need additional information.
Stephanie
Post: BRRR Financing Mortgage Options - Where do I start?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Melissa Block:
Hello All,
I just purchased my first 2 investment properties at auction in Louisiana and used cash. I will also reno the properties using my own money. I want to rent the properties out and get a mortgage on the houses to get my investment back out.
Question 1: I was told I would have to own the homes for 6 months before I could get a mortgage. Is this true if I paid all cash?
Question 2: Will I need to make a down payment to get the mortgage and pull my cash back out plus 20% more to give me more cash flow for future investments?
Question 3: What type of financing should I consider? I went to the network section of BiggerPockets, and there are HELOC, Conventional, FHA, Hard Money, etc. I'm not familiar with all of these, nor do I know what type of financing is best for my circumstances. I'm looking for guidance on where I should start to understand my options better.
About me 1: I don't own my own home at this time. The market where I live is super pricey, so I have invested in another state to get my feet wet with investing, so the mortgages will be ones that I can get in a different state than I live in.
About me 2. I'm not a first-time home buyer. It has been less than 2 years since I sold my home due to uncontrollable circumstances. So first time home buyer programs aren't an option for me.
About me 3. My goal is to build a portfolio using the BRRR methodology and position myself to where I can buy my own home. Moving to a more affordable state or area isn't an option for me.
About Me 4: I plan to attend my local Auctions so that I can buy my own home cash at auction within the next 6-8 months, reno it with my own cash, and take a mortgage out and house hack it. I need to position myself where I can buy a house, so the financing I use on these first 2 investments can't hinder that. (I hope this is possible).
About Me 5: If you are wondering why I didn't get these financing questions answered before I purchased the homes, it's because I'm new to real estate investing, and I didn't find BiggerPockets until last week, so I was maneuvering through this world with little direction and sheer determination. What is done is done. I can't look back now and focus on the should've. I have to focus on what I can now control.
About me 6: I have a great credit score, and I don't want my credit impacted to the point where it will prevent me from my personal home-buying goal.
Hopefully, this is enough information to help point me in the right direction. Thanks in advance for your time! I look forward to hearing from you.
Question 1: I was told I would have to own the homes for 6 months before I could get a mortgage. Is this true if I paid all cash? There are lenders that can refinancing using the new appraised value after just 3 months of ownership. You need a good broker that can help you navigate the different lenders and their requirements.
Question 2: Will I need to make a down payment to get the mortgage and pull my cash back out plus 20% more to give me more cash flow for future investments? No, you already own the property, so your cash purchase was your down payment. You'll be limited to 75% of the new appraised value after your renovations and the property being leased, but you should get your money out do to another purchase.
Question 3: What type of financing should I consider? I went to the network section of BiggerPockets, and there are HELOC, Conventional, FHA, Hard Money, etc. I'm not familiar with all of these, nor do I know what type of financing is best for my circumstances. I'm looking for guidance on where I should start to understand my options better. We always recommend you go the conventional rate for financing first. You may not qualify, but then again, you might. There are a variety of reasons why people don't qualify, but if you do, the money is cheapest. Once you've exhausted all of your conventional options, then DSCR (Debt Service Coverage Ratio) money is your next best bet. Easy qualification with higher rate and fees.
Congratulations on your bravery and perseverance. Buying two properties is not easy to do. For additional guidance, feel free to PM me.
Stephanie
Post: CHICAGO DSCR LENDER NEEDED ASAP
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Monica Soyemi:
So I purchased a property a few months ago through a wholesaler, a Hard Money Lender actually blasted out the deal to investors across the country and I was able to get the deal. I just completed the rehab a couple of months ago, and was looking for a buyer, but unfortunately due to Rate increases the buyer demand has slowed. I am now considering doing a refinance or cash out refinance with a DSCR lender, and maybe re-list next year because I don't believe my income can support the mortgage. Currently paying around $4000 in Hard Money interest per month, so looking to find a great solution based lender. Thanks
Hey Monica
These are math problems. In your case, the problem to solve for isn't your equity, but the rents (because 75% cash out is certainly available after a few months of ownership). Your ratio needs to be at a 1.15% DSCR to get there. If the property is now valued at $300,000, the max loan amount will be $225,000. As today's DSCR interest rates eclipse 8.5% on a 30 year fixed, the monthly principal and interest would be $1,730. Not sure what your taxes and insurance are, but with rent at $2,500, you're very tight. You could lower the loan amount to make it work, but you run the risk of coming out of pocket for some of the closing costs. There's a loan there, but structure and the right broker/lender, is important.
PM me if you need additional information
Stephanie
Post: Help please - help me get creative
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Lance Mundo:
I'm preparing to make an offer on a home that is currently under mortgage by the owner. He is selling FSBO. My idea was to get creative with the financing, and offer him several options for the deal. I'm pre-approved for a DSCR and conventional loan. This is an income producing STR/vacation home.
My ideas for options are:
1. DSCR with seller carry back of the down payment, at 5% for 25 years, with an option on my part to pay in full after one year.
2. Taking over the loan subject-to, and paying his equity stake as a seller financing at current market rates.
Would anyone have an example letter of intent/contract for something like this that they would willing to share?
Is there a different option that I could offer that would include giving him full asking price, but in creative terms?
It depends on the owner's equity position. Almost all DSCR lenders won't allow a 2nd behind them (and none will allow it to 95%). If the seller will hold the 2nd to 90% and the first that's already in place will be covered by a 75% ltv first then you may have something. PM me for more details.
Stephanie
Post: Found a great deal but I do not have enough capital
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
If you can get the seller to hold a 2nd to 90%, there are lenders that will go to 75% on a 6 unit with no DSCR component. PM me if you can make that work and I'll give you more details.
Stephanie
Post: Financing for travel nurses
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Chris Allen:
Quote from @Stephanie P.:
Quote from @Sophia Fugate:
Good evening, I currently work as a travel nurse and having a hard time finding conventional lending. I’ve been a nurse for 13 yrs but started traveling this past June. I spoke with two lenders who stated they would not be able to help me.
Would anyone happen to have any knowledge regarding when a travel nurse should apply for a conventional loan? Or would another financing option be available? Should I keep calling different lenders?
Thanks!!
Taxes are the key. If you are a travel nurse like some of our clients have been, they are paid 1099 and you need to have a track history of being self employed for 2 years before you'll qualify for conventional financing, even if you've been a nurse for 13 years, it's all about how you're being paid. That's the case for bank statement loans as well (keep in mind these are generalizations and there may be a rogue bank statement product out there for self employed people with less than 2 years self employed, but I don't know about it).
DSCR loans work best in your situation and the more you can put down, the better the pricing. Rates are still in the 7's on a 30 year fixed (yes the points and fees are borrower paid and more than conventional). No self employed time constraints, no tax returns, no pay stubs and no profit and loss statements. The property has to have at least a .75 DSCR meaning the rent has to cover at least 75% of the total mortgage and you have to have decent credit; that's all. Find a good mortgage broker.
Hope that answers your question.
Stephanie
I have been travel nursing for the last two years and have actually been considered W2 with the companies I travel with. Most of the travel nurses I personally know are all W2 as well, though I know there is a lot of nurses out there that do prefer to be paid as 1099.
If you're W2, as long as your W2's are from nursing, you should be able to use all of them.
Post: No primary home if I use 10 conventional loans for investing?
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Matt Wells:
If I use up my 10 conventional Fannie Mae/Freddie Mac loans for investment properties, does that mean I can't get a conventional loan for a primary residence?
Matt
To give you some clarification, Fannie Mae counts "financed properties" in their guidelines for a reason. If a residential property has a lien against it, it's considered financed.
@Shaun Weekes gave good advice along with the seller's guide. Read it to get clarification. Just because a loan is in a blanket mortgage with other properties does not mean it won't show on a drive report and count against your total number of "financed properties" and just because it doesn't show up on your credit report, doesn't mean it doesn't count as financed. Commercial properties are defined by Fannie Mae as property that's not a 1-4 unit residential property so even if you have 5 properties in a blanket, if they're single family non-owner occupied properties, they're not considered commercial.https://selling-guide.fanniema...
You get 10 non-owners plus your owner occupied for a total of 11. After that, you're in DSCR country.
All the best
Stephanie
Post: FIND THE DEAL or FIND THE MONEY!
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Angela Beers:
Hi,
I have hit a road block to pulling the trigger on my first BRRRR. Should I find the deal and the money will follow?? OR Should I procure a hard money pre-approval and go hunt for the deal?
Welcome to BP. Hope that helps. Feel free to reach out with questions.
Stephanie
Post: Maryland multi-family investors
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Khadija Daniels:
Hello BP, I am interested in multi-family investing and will be a first time home buyer. Are there any local meet - ups? Or individuals looking to connect in the Baltimore or surrounding areas?
FHA is owner occupied financing. What you're describing is a multi family property that needs rehab, so you'll have to live in the property. You need a 203K loan.
Stephanie
Post: Rehab Funding Exhausted....Alternative funding
#5 Mortgage Brokers & Lenders ContributorPosted - Washington, DC Mortgage Lender/Broker
- Posts 4,876
- Votes 2,759
Quote from @Jay Charles:
Hello BP,
What are some alternatives for additional funding if you've exhausted your rehab project funds?
You have to evaluate what made you go over your budget and either adjust the scope of work, do some of the work yourself if you're able and then like others have said, get alternative funding like credit cards. If you're using credit cards, make sure you're either getting cash back or a discount on the purchases.